(MENAFN) Russian Deputy Prime Minister Alexander Novak, as quoted by Interfax news agency on Tuesday, revealed that the OPEC+ alliance, comprising major oil-producing nations, has reached an agreement to take necessary action regarding oil production should the need arise. Novak emphasized the importance of closely monitoring the market situation without preemptively predicting future steps. He underscored that OPEC+ possesses the flexibility to adjust oil production levels as deemed necessary.
Highlighting the dynamic nature of the oil market, Novak emphasized that decisions regarding production levels depend on the prevailing conditions and the delicate balance between supply and demand. Stressing the significance of comprehensive analysis encompassing all relevant data, he suggested that it is premature to anticipate specific actions at the present moment. Instead, the primary focus remains on vigilant market observation.
Regarding the possibility of increasing oil production, Novak reiterated that OPEC+ retains the option to adjust production levels as needed. This statement underscores the alliance's commitment to maintaining stability and equilibrium within the oil market, with a readiness to respond promptly to emerging developments.
While formal talks on extending voluntary oil production cuts of 2.2 million barrels per day beyond June have yet to commence, Reuters reports that three sources from OPEC+ producers have indicated a willingness to prolong these cuts if demand fails to rebound. With alliance members slated to convene on June 1, the upcoming meeting will serve as a crucial forum for deliberating on production policies and charting the course forward amidst evolving market dynamics.
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