Peak summer demand could drain global oil inventories to critical levels if the OPEC/non-OPEC coalition leaves its production cut agreement in place, Russian energy minister Alexander Novak said Tuesday.
That would leave producers unable to respond to any disruptions and lead to a price spike, he said in Minsk ahead of OPEC/non-OPEC meetings scheduled later this week in Vienna. “The third quarter…features the highest demand for oil. So, oil shortages are not ruled out, if measures are not taken,” Novak said, as reported by Prime news agency. “Stocks will be reducing drastically and this can overheat the market, we believe.”
Non-OPEC Russia has proposed a 1.5 million b/d production increase, and key OPEC ally Saudi Arabia appears on board with easing quotas. Platts
