Russia sees no need for OPEC+ cuts as prices set to rise - Novak

Quantum Commodity Intelligence – Russia expects Brent crude prices to rise above $80/b later this year although does not see a need for any further output adjustments from OPEC+ members, Deputy Prime Minister Alexander Novak said Thursday.

In comments relayed by the state-run TASS agency from an interview with Izvestiya, Novak said an increase in demand would help lift prices from current levels.

"I think that the price will be slightly higher than $80 per barrel, and I hope that the demand will still rise in the summer. A reduction of output by many countries is also going to influence," he said, referencing previously announced production cuts.

Russia announced a reduction of 500,000 bpd earlier this year, followed by a package of OPEC+ cuts of 1.15 million bpd, including 500,000 bpd from Saudi Arabia.

However, one of the talking points at the early-June OPEC+ gathering in Vienna is likely to be compliance levels, with Russian crude exports so far showing few signs that the announced cuts have been fully implemented.

Novak also added that China's recovery had been more uneven than previously forecast, but he expects that to change.

The Deputy PM also said Russia supplied 32 million mt of oil and petroleum products to India last year and it plans to continue boosting supplies, adding China and India "are our friendly markets".

This year the plan is to redirect 140 million mt to Asia, with around 80 million mt remaining in Western markets.