Russia increases oil production by 60 percent
As a result of the agreements reached at the Saturday meeting in Vienna of the OPEC countries regarding an increase in oil production and exports, positive economic growth in the Russian state budget is expected.
Russian Energy Minister Alexander Novak stated this in an interview with the Rossiya 24 TV channel, a PolitNavigator correspondent reports.
“A decision was made to partially restore production in relation to the quotas and cuts adopted in December 2016. We are talking about increasing production by about 1 million barrels per day - this is a recovery of production by about 60 percent from today’s level. For Russia, this means that we will restore production by approximately two-thirds relative to the decline that occurred,” the minister said.
At the same time, Russia has the opportunity to regulate oil production depending on expediency.
“We have the ability to make any decisions - both on increase and decrease, this is provided for by the current agreement, the question is the feasibility, which will be based on the current situation on the market. Today we see an increase in demand during the third and fourth quarter. If this demand exceeds supply, we will quickly make a decision to increase production,” the head of the Ministry of Energy noted.
“Increased production volumes, increased export volumes, additional revenues for companies, additional revenues to budgets. That is, for us this is a positive economic effect for Russia as a whole,” Novak concluded.
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