(Bloomberg) -- OPEC+ could take further measures if last week’s production cuts agreement isn’t enough to balance the oil market, said Deputy Prime Minister Alexander Novak.
The deal to reduce OPEC+ output by 2.2 million barrels a day for three months from Jan. 1 should allow the market to “pass safely” through the period of seasonally lower demand usually seen in the first quarter, Novak said on Tuesday according to the Tass news agency.
“In case the current actions are not enough, OPEC + countries will take additional steps to avoid speculations and volatility,” he said.
Production cuts could be deepened or extended at the OPEC+ level if needed, said a person familiar with discussions.
Novak was speaking one day before he will join President Vladimir Putin on a visit the United Arab Emirates and Saudi Arabia. The overseas trip, a rarity for the Russian leader since the invasion of Ukraine, will bolster partnerships with the key members of the Organization of Petroleum Exporting Countries.
In an interview with Bloomberg on Monday, Saudi Energy Minister Prince Abdulaziz bin Salman said the OPEC+ oil production cuts can “absolutely” continue past the first quarter if needed, as he pledged the curbs would be delivered in full.
(Updates with more detail in fourth paragraph.)
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