Russia's Energy Minister Said the Country Fulfilled Nearly 100% of Its Oil Production Reduction Obligations in August

Russia's energy Minister Alexander Novak said that under this year's agreement between Opec and non-OPEC oil producers to cut oil output, Russia fulfilled nearly 100 percent of its quota in August, nearly fulfilling its obligations to cut oil production, the Russian satellite News agency ria Novosti reported.

Novak 7 told the media that Russia has been committed to fully implement the output reduction agreement. According to preliminary statistics, which will be released later, Russia fulfilled nearly 100% of its oil production quota in August. Novak also told the media recently that he expects the international oil market to average between $50 and $55 a barrel next year, but that there will be volatility. That estimate is understood to be lower than those forecast by Goldman Sachs and others.

Opec and non-OPEC producers agreed in April to cut output by 9.7m b/d in May and June, before cutting to 7.7m b/d between July and the end of the year. In June, Opec and non-OPEC producers agreed to extend production cuts of 9.7m b/d until the end of July. On July 15, Opec said in a statement that the cartel and non-OPEC producers agreed to cut output to 7.7 million barrels a day starting in August.

Opec and non-OPEC producers met at ministerial level in August to review the implementation of the cut agreement and keep the level unchanged.

A statement released after the meeting said: 'There are signs of improvement in supply and demand in the international crude oil market, the momentum of inventory growth has begun to reverse, and the gap between global oil supply and demand is narrowing.' But the risk of continued coVID-19 spread remains and the crude oil market is recovering more slowly than previously thought.