Novak: the supply and demand of oil should be balanced at the expense of the market

Novak: the supply and demand of oil should be balanced at the expense of the market


According to the Russian Minister of energy, of all possible methods of balancing is most effective when the balance of supply and demand vyrovnitsja through market instruments.

TEHRAN, 21 Nov. For efficient recovery of the world oil market need to provide this market to itself, i.e. not to apply any special measures, said Minister of energy Alexander Novak.

“We believe that this is the most effective way of instrument of regulating and balancing market,” he said, answering a question whether he agreed with the thesis that the market should be left alone to recover.

“We believe that today the situation in the market complex and supply exceeds demand. Of all the possible ways of balancing is most effective when the balance of supply and demand vyrovnitsja through market instruments. Today we are seeing that production is not growing at the same rate, the demand continues to grow at the level of 1-1,5 million barrels per day in the year. In our opinion it will still be some time before the market will find its balance,” added Novak.

Speaking about the cooperation with OPEC member, Novak recalled that Russia has cooperated with OPEC and meets regularly.

“This year we have met several times with Mr. (Secretary General of OPEC Abdullah) al-Badri and his Secretariat, the energy dialogue we have a stable and formalized, but we also accept consultations in the meetings of OPEC and the countries not members of the organization. The last such consultation was held on 21 October in Vienna, the next in mid-December in Vienna. Date now agreed. This meeting will be at the level of experts,” he said.