Russia expects an increase in oil demand next year

Russian Deputy Prime Minister Alexander Novak said today, Wednesday, that the “OPEC +” group of major oil producers is resisting calls from Washington to increase production, because it does not want to deviate from its policy, as he put it.

He added - in an interview with a Russian media outlet (RBC) - that it would be appropriate for the market to show in the medium term how oil producers will increase production at a time when demand is increasing.

The Russian Deputy Prime Minister expected a rise in global oil demand by about 4 million barrels per day next year, stressing that the possibility of withdrawing the United States or other countries from its strategic reserves would have a short-term impact on the market.

The Russian official stated that the price of oil between 65 and 80 dollars per barrel would be appropriate next year.

The price of oil is currently estimated at less than $80 a barrel.

The United States has repeatedly pressured the "OPEC Plus" group to accelerate the increase in production, coinciding with the rise in gasoline prices in the United States and the decline in the popularity of President Joe Biden.

In the face of the rejection of the "OPEC Plus" group, Washington said, last November, that it and other consumers would withdraw from their strategic reserves of crude.

When asked about the reason for the "OPEC Plus" group rejecting the American invitations, Novak said that the group has a long-term vision.

He added - during the interview - "We believe that it will be appropriate for the market to show in the medium term, how we will increase production as demand grows."

"Producing companies should be aware in advance of any investments that must be planned to ensure an increase in production," he added.

For its part, OPEC and its allies agreed this month to stick with their current policy of monthly increases in oil production, despite concerns that both the withdrawal of the United States from crude reserves and the new mutated strain of the Corona virus, Omicron, could lead to a new collapse in crude prices.