According to Russia’s Deputy Prime Minister Alexander Novak, global oil demand is expected to increase in the coming months as the summer driving season approaches. This anticipated rise in demand was a key factor in the OPEC+ group’s recent decision to enhance oil supply in the market. Russia, as part of OPEC+, is currently reducing its output, and the group plans to release additional oil starting in April, marking its first production increase since 2022. Novak emphasized that OPEC+ is prepared to respond if sluggish demand and rising supplies, particularly from the United States, result in an oversupply situation.
He expressed confidence that concerns regarding demand may have been overstated. “Oil demand will grow during the driving season,” he stated in an interview with Reuters. However, the International Energy Agency (IEA) has raised alarms about potential oversupply, estimating that global oil supply could exceed demand by approximately 600,000 barrels per day this year. This imbalance is largely attributed to increased production in the United States coupled with weaker-than-anticipated global demand.
Additionally, Novak addressed the current status of Russian gas exports to Europe, particularly through the battered Nord Stream pipelines under the Baltic Sea. He indicated that discussions about resuming these gas exports are not on the agenda at this moment. Furthermore, he noted that there are no ongoing negotiations regarding the restoration of Russian oil flows to Germany via the Druzhba pipeline. Since the conflict in Ukraine escalated, Germany and Poland halted their purchases of Russian oil, while Hungary and Slovakia continue to source oil from Russia.