Oil production can increase to supply the global market

Russia and other major oil producers can further increase the production of the commodity if supply problems reach the global market, said Russia's minister of energy, Alexander Novak, this Friday.

Oil prices have risen to maxims since 2014 in the last few weeks amid the expected fall in Iran's oil exports this year due to the resumption of U.S. sanctions on the country, in addition to the decline in Venezuela's production and problems in Libya's supply , Canada and the North Sea.

OPEC and other producers including Russia responded to the grip on the market with a relief in their offer cut agreement in June. The agreement, in practice, raises the combined oil production in 1 million barrels per day (bpd), and the Russian slice of 200,000 bpd.

"If we need more than 1 million bpd, don't discount that we can quickly discuss this and make a quick decision," Novak told journalists, adding that major oil producers can meet and discuss the market situation in a Teleconference.

He also said that Russia could elevate its production beyond that level of 200,000 bpd if there is need.
The International Energy Agency (IEA) said on Thursday that there are already "very welcome" signs that the production of the main producers has been high and can reach a record.
Novak said the biggest oil prices this year should add 2.5 trillion rubles (40.14 billion dollars) to Russian public coffers in 2018. The minister also said that the tariff war between the United States and China has a negative impact on the global economy and increases the volatility of oil prices. Source: Extra newspaper.

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