direct: The Russian Energy Minister said that the global oil market may face a deficit of 3 to 5 million barrels per day next July.
The Russian news agency “Interfax” quoted Alexander Novak on Thursday as saying that depending on the criteria of the deal that may be reached by the “OPEC +” producers, the market may witness a deficit due to the decline in supply and the recovery of demand.
“Novak” said that the global demand for oil decreased by 25 to 28 million barrels per day in April, and by 21 million barrels per day in May.
“Novak” explained that, thanks to OPEC + production cuts of about 10 million barrels per day, and the natural decreases of other producers by between 3.5 to 4 million barrels per day, the surplus fell to 7 million barrels per day.
He continued, “We are witnessing more growth in demand, and it is likely that the market will reach a balance of supply and demand this month.”
The Russian minister stated that next month, given the growth in demand and the agreement on oil production cuts, we will see a deficit in the oil market.
Investors are awaiting the possibility of oil producers agreeing to extend the production reduction of approximately 10 million barrels, which ends this month.