Novak: Oil Price of $ 40 per Barrel Reflects Real Situation in Market

Today’s oil quotes objectively reflect the supply and demand situation that arose under the restrictive measures introduced to combat the COVID-19 coronavirus, Russian Energy Minister Alexander Novak said on the Russia 24 television channel.

According to him, the world oil market may be balanced by the end of 2020 or by mid-2021, taking into account the average five-year value of commercial oil reserves in the world.

Mr. Novak also commented on the OPEC + Monitoring Committee meeting held today. According to him, the countries that have not fulfilled the terms of the OPEC + transaction have committed themselves to 100% fulfillment of their obligations and to compensate for the missing reduction in oil production within a few months.
The total reduction in the framework of the OPEC + transaction reached 87% in May.