MOSCOW (RUSSIA) – In the wake of global economies and oil demand making a recovery, there is no point in extending oil output cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, Kirill Dmitriev, head of Russia’s sovereign wealth fund RDIF, told RBC.
Producers are currently slashing output by a record 9.7 million barrels per day (bpd), which is 10% of global supply, after the demand dived by a third.
A panel of OPEC group of producers on Thursday left the door open for extending or easing those cuts from August, while pressing a number of countries, such as Iraq and Kazakhstan, to improve their compliance.
“We already see that economies have started to emerge from the coronavirus and markets are recovering, supporting oil demand, so there is no point to extend strict curbs for longer than a month (through July),” Dmitriev said in an interview.
Current plans call for the cuts to fall to 7.7 million bpd from August and stay at that level until December.
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