Russia says OPEC+ ceding oil market share for long-term stability
Novak says important for producers' energy sectors to develop
Prices should not be high as that slows demand growth
Current oil price meets needs of consumers and producers
Expects price volatility to subside as geopolitical risks already factored in
Rewrites throughout, adds quote, background
MOSCOW, Sept 30 (Reuters) -OPEC+ is strategically reducing oil supply andceding market share with a long-term view so that the producing countries secure enough investments, while oil prices suit both producers and consumers, Russian Deputy Prime Minister Alexander Novak said.
Novak was speaking to Al Arabiya News outlet; the transcript of the interview dated Sept. 28 was provided by his office in Russian on Monday.
Askedif maintaining market share was more important than the price, Novak replied it would be wrong to think short term.
"Yes, we are probably deliberately moving, temporarily losing market share, but we are looking forward not to today, but to the future," Novak said.
"It is important that, firstly, the energy sectors in exporting countries develop so that investments continue. This requires prices that would satisfy both exporters and importers, so as not to slow down the growth of demand, prices should not be high," he added.
The market share of OPEC+, formed in late 2016 by the Organization of the Petroleum Exporting Countries and allies led by Russia,has slipped to all-time lows after output cuts since 2022 and supply increases by the U.S. and other producers, according to the International Energy Agency.
OPEC+ oil output is equal to 48% of world supply, according to Reuters calculations based on IEA figures.
Earlier this month, OPEC+ agreed to delay a planned gradual oil output increase to December from October after crude prices hit their lowest in nine months, saying it could further pause or reverse the hikes if needed.
OPEC+ ministers hold a full meeting of the group to decide policy on Dec. 1. A group of top OPEC+ ministers called the Joint Ministerial Monitoring Committee that can recommend changes gathers on Oct. 2.
Novak also told Al Arabiya News that the current oil price, which has averaged at around $80 a barrel year-to-date, is well-balanced and meets the needs of consumers and producers.
He said he expected oil prices' fluctuations will subside following volatility spurred by the tensions in the Middle East as geopolitical risks are already factored in.
Global benchmark Brent crude futures LCOc1 ended Monday just below $72, posting a 9% drop in September, its biggest monthly decline since November 2022. After falling for a third consecutive month, it slumped 17% in the third quarter, its biggest quarterly loss in a year.
Reporting by Vladimir Soldatkin and Maxim Rodionov; Editing by David Goodman and Marguerita Choy
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
