OPEC+ may agree on output ‘increase’ pact, says RDIF chief

OPEC+ may look at increasing oil output this year, given reduction in global crude inventories, Russian Direct Investment Fund (RDIF) CEO Kirill Dmitriev said on Monday.

“The deal between the OPEC+ countries aimed at stabilization of the oil market has brought significant benefits to both oil consumers and producers. It is important to understand that the deal is about policy coordination between OPEC+ members, which implies not only joint output cuts but also output increases when necessary,” he told a conference in Moscow.

Citing OPEC+ countries decision to increase output in June 2018 as an example, Dmitriev said it is “very likely that given solid market fundamentals and reduction of global inventories, a new decision to stop the cuts and start increasing output can be taken this year.”

He added: “This will not mean abandoning the deal, just the opposite, it stresses high-level coordination between the deal participants. Depending on the market situation it is important not only to jointly cut output but at times to jointly increase it”.

Earlier on Monday, Saudi Energy Minister Khalid Al-Falih said the global oil market is on its way towards balance.