Price of $45-$55 optimum, allows for production boost: NovakRussia expects to support an increase in oil production by the group, known as OPEC+, of another 500,000 barrels per day (bpd) from February at next month’s summit of the leading global oil producers, Russian Deputy Prime Minister Alexander Novak said. Oil prices are trading above $50 per barrel, after coming under pressure this week from concerns that new fast-spreading variants of the coronavirus will lead to reduced fuel demand. Russia, other leading oil producers and the Organization of the Petroleum Exporting Countries, a group known as OPEC+, agreed to reduce output to support the global oil market as the COVID-19 pandemic has weakened fuel demand. Since the agreement on a record global supply cut in April, OPEC+ has progressively reduced the cuts and is expected in January to release an extra 5,00,000 bpd into the market. “If the situation stays normal and stable, we will support this position (increase by 5,00,000 bpd),” Mr. Novak told reporters.

Source: The Hindu December 25, 2020 17:28 UTC