Novak: Western interference in the mechanisms of the oil market led to a reduction in production

The intervention of a number of Western countries in the instruments of the oil market is one of the reasons why a number of OPEC+ countries announced a voluntary reduction in oil production. This was stated by Russian Deputy Prime Minister Alexander Novak following a meeting of the OPEC + Monitoring Committee, his words are quoted by TASS.

Novak stressed that at a meeting of the OPEC+ ministerial monitoring, the statements of a number of alliance states on a voluntary reduction in oil production since May were taken into account and approved as very important and necessary to stabilize the situation on the oil market.

The Deputy Prime Minister of Russia added that at the moment there are many uncertainties in the oil market, including due to volatile prices, supply and demand, reduced investment in the sector, and the banking crisis in the United States and Europe.

“The energy policy that is being pursued today by many countries, interference in market mechanisms is also, in fact, one of the reasons why the oil exporting countries that are members of OPEC + voluntarily decided on an additional reduction,” Alexander Novak concluded.

Recall, on April 2, Russian Deputy Prime Minister Alexander Novak announced that Russia would extend a voluntary reduction in oil production by 500,000 barrels per day from the average production in February until the end of 2023. He stressed that the country is reducing oil production as a responsible and preventive action.

The vice premier added that the global oil market is now unpredictable due to the banking crisis in the US and Europe.

Trading data as of April 3 shows that world oil prices rose by more than five percent after a number of OPEC+ members, including Russia, decided to cut production of raw materials.

The US economy also predicted another problem caused by rising oil prices.