Russia Has No Plans to Leave OPEC+, Deputy PM Novak Says

MINERALNYE VODY, April 30. /TASS/. Russia has no plans to leave OPEC+, as the agreement helps reduce oil market risks during times of crisis, Russian Deputy Prime Minister Alexander Novak told reporters on the sidelines of the Caucasus Investment Forum. According to him, the oil industry is still in a profound crisis caused by a supply shortage due to the conflict in the Middle East. TASS has compiled the Deputy Prime Minister's key statements. UAE withdrawal from OPEC and OPEC+ - Russia and Saudi Arabia have not yet discussed the United Arab Emirates' decision to leave OPEC+ - "We have not discussed it," Novak said. - OPEC+ countries will continue to work together despite the UAE's withdrawal from OPEC and OPEC+. - "We will continue to work together. I think each country will speak for itself," Novak assured. On Russia's membership in OPEC+ - Russia has no plans to leave OPEC+. "As the largest oil producer, we have no intention of leaving," Novak said. - OPEC+ effectively mitigates oil market risks during a crisis and maintains investment activity in the industry. - "This cooperation effectively mitigates oil market risks during a crisis. It allows us to maintain a strategy for investment activity, industry development prospects, and ongoing interaction between countries. Therefore, we will continue to work together," the Deputy Prime Minister reiterated. Situation on the global oil market - The oil industry continues to experience a profound crisis caused by a supply shortage, so a price war following the UAE's withdrawal from OPEC and OPEC+ is ruled out. - "In the current situation, how can there be a price war when there is a shortage on the market? Therefore, we see that the deepest crisis in the industry continues," Novak told reporters. - "A huge amount of oil is not entering the market today. Demand significantly exceeds supply. Of course, we see an imbalance due to serious logistical difficulties and the situation in the Middle East," he added. - All of this is negatively impacting the market: "But overall, we believe that this is also not a good factor for the oil industry, because consumers are forced to seek alternative sources when prices are high," Novak said. "- Therefore, it would be more appropriate for the market to be balanced and long-term-focused for both consumers and producers," he concluded.