Russia’s Novak: OPEC+ prioritizes mid-term strategy over US calls for more oil

Russian Deputy Prime Minister Alexander Novak said on Wednesday, OPEC and its allies (OPEC+) remain focussed on their policies to stabilize oil markets in the mid-term while resisting calls from Washington to boost output.

Key quotes

“We believe that it would be right for the market to show in the mid-term how we will increase production as demand grows.”

“The producing companies should understand beforehand which investments they have to plan in order to ensure a production increase.”

“The possible release of the strategic stockpiles by the United States and other large consumers will have a limited short-term impact on the oil market.”

“Global oil demand was seen rising by around 4 million barrels per day (bpd) next year after an increase of up to 5 million bpd this year.”

“An oil price of between $65 and $80 per barrel should be comfortable next year. “

Market reaction

WTI was last seen trading at $75.78, almost unchanged on the day.