OPEC+ ceding oil market share in attempt for long-term stability: Novak

Alexander Novak, Russian Deputy Prime Minister

OPEC+ is strategically curtailing oil supply and ceding its market share with a long-term view, so that producing countries can secure enough investments under oil prices that suit producers and consumers alike, Russian Deputy Prime Minister Alexander Novak told Al Arabiya News.

According to Novak, while maintaining market share is more important than the price, it would be wrong to think short term.

He added, “Yes, we are probably deliberately moving, temporarily losing market share, but we are looking forward not to today, but to the future.”

“It is important that, firstly, the energy sectors in exporting countries develop so that investments continue. This requires prices that would satisfy both exporters and importers, so as not to slow down the growth of demand, prices should not be high,” Novak further stated.

He pointed out that the current oil price, which averages $80 per barrel over the course of 2024, is balanced and suitable for both exporters and importers.