Saudi Arabia and Russia are aimed at refusing to voluntarily reduce oil production

Sergey Kondratiev gave a comment to TASS about the dynamics of oil production in Russia.

MOSCOW, August 3. /TASS/. Saudi Arabia and Russia are likely to abandon voluntary commitments under OPEC+, but they intend to do this gradually. This opinion was expressed by Sergey Kondratiev, head of the Economic Department of the Institute for Energy and Finance, commenting on the decision taken by the countries today.

Earlier on August 3, Saudi Arabia and Russia announced an extension of the reduction in oil production and exports for September. The Kingdom - by 1 million barrels per day, while Russia will reduce supplies by 300 thousand b /d instead of 500 thousand b/d, set for August.

"I think that, on the one hand, over the past month we have seen a fairly significant increase in world prices, but the market situation remains complicated and therefore Russia and Saudi Arabia will try to get out of the accepted restrictions quite smoothly, and this is due to the extension of part of the restrictions for September," he said.

According to him, in September - October, oil demand is declining due to the end of the high season. "At the moment, this usually puts additional pressure on prices, which could also be one of the factors adopted by Russia and the KSA when deciding to maintain production restrictions," he added.