Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia’s current oil production is approximately 9.5 million barrels per day, and that production of oil and gas condensates is expected to range between 520 and 530 million tons in 2024.
The Kremlin energy sector official added during a visit to Iran that he sees a balance between supply and demand in global oil markets.
Novak stressed that it is too early to talk about the possibility of extending the voluntary oil supply cuts made by OPEC+ countries until the second quarter or until the end of 2024.
Reuters reported on Tuesday that the Organization of the Petroleum Exporting Countries and its allies are considering extending the voluntary cuts, which total about 2.2 million barrels per day, agreed upon for the first quarter of this year.
No ban on diesel exports
On the other hand, Novak said that Russia is not considering a ban on diesel exports and that the ban on gasoline exports could be lifted at any moment if the market becomes saturated.
He added during a visit to Iran, “The situation in the local oil products market is stable. This measure is preventive, meaning that we do not have a shortage today. We look ahead and work to balance supply and demand in the future.”
He added, “This is a completely normal situation. When the market is saturated and there is a surplus, it is natural to take measures to lift the export ban.”
On Tuesday, Russia imposed a six-month ban on gasoline exports, starting from March 1, to maintain price stability in light of increasing consumer and farmer demand, as well as to provide the opportunity to maintain refineries in the world’s second largest oil exporter.
The ban led to a drop in wholesale gasoline prices in the local market in Russia by 5.7 percent in the two days until Wednesday, according to traders and Reuters accounts.
But diesel prices also fell by 3.7 percent in these two days.
Gasoline prices have increased by 22.4 percent and diesel prices by 14.9 percent since the beginning of the year, according to Reuters calculations based on data from the St. Petersburg Stock Exchange.
Fuel prices and elections
Domestic fuel prices are influential for motorists and farmers in the world’s largest wheat exporting country ahead of the presidential elections scheduled for March. Some Russian refineries have been subjected to attacks by Ukrainian drones in the past few months.
During Novak’s visit to Tehran, Iranian Oil Minister Javad Oji said that Russian companies are ready to participate in petrochemical production projects in Iran.
The two countries have grown closer since Russia ordered tens of thousands of soldiers to be sent to Ukraine in February 2022.
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