The alliance of OPEC and non-OPEC countries remains key to stabilizing the oil market which is still volatile from the consequences of COVID-19 and Russia expects the deal to last until the end of 2022, President Vladimir Putin said Oct. 13.
Speaking at the Russian Energy Week in Moscow, he noted how the OPEC+ agreement on historic oil production cuts reached in April 2020 was crucial to ensuring stability during the pandemic and falling oil demand, as well as keep up investment activity.
"At that time, the OPEC+ agreement played a key role in stabilizing the oil market ... If investments in new fields and prospective oil production were stopped, the market would inevitably face a large-scale, critical deficit in the very near future. We are witnessing some of this today," Putin said.
Russia remains a responsible member of the alliance and expects the OPEC+ deal to last until the end of 2022, he said.
"As the global economy and oil demand are still recovering, our countries continue stabilize the market and prices, and timely increase oil production and supplies," Putin said.
Sharp jumps in oil prices seen in recent weeks remain negative for both producers and consumers, he said. Moreover, prices reaching $100/b "is quite possible", Putin said.
S&P Global Platts has assessed Dated Brent at three-year highs in recent days, with the benchmark reaching as high as $84.43/b on Oct. 11.
"We often hear that high prices are beneficial for producers, allowing them to receive super-profits without making any visible efforts ... high prices have negative consequences for everyone, including producers. And our producers are well aware of this," Putin said.
Beyond 2022, Putin hopes to continue cooperation with OPEC+ countries on broader topics, including reduction of carbon footprint.
"Cooperation between our countries has every chance of further development. Mastering new environmentally friendly technologies, production and refining of hydrocarbons, exchange of practices, reduction of carbon footprint," he said.
Russia aims to become carbon neutral by 2060, Putin said.