Russia sees global oil output cuts easing from August

Russian Energy Minister Alexander Novak said that the OPEC+ group of oil producers is expected to start easing oil output cuts from August as previously agreed.

He also said the global oil market might achieve a balance between supply and demand in July and could even face a shortage of crude, while oil consumption may not recover to pre-crisis levels before the end of 2021.

OPEC+, including Russia, agreed to reduce their combined oil output by around 9.7 million barrels per day, or some 10% of global consumption, to tackle the fallout from the coronavirus pandemic.

Record cuts were meant to last until the end of June but have been extended into July.

Key OPEC+ ministers will meet in mid-July at a panel, known as the Joint Ministerial Monitoring Committee (JMMC), to recommend the next level of cuts.