OPEC+ shouldn't make hasty decisions, oil prices could stabilize soon - Gazprom Neft CEO

VLADIVOSTOK. Sept 5 (Interfax) - The OPEC+ alliance should not make hasty decisions regarding the planned increasing in oil output from October against the backdrop of falling oil prices, which could stabilize in the near future, Gazprom Neft CEO Alexander Dyukov said.

The market is currently coming under pressure from various factors, he said. "These are the expectation that Libya will add 0.5 million bpd to the market, signs of certain slowdown in a number of major economies and the market's expectation that OPEC+ member countries will increase output from October, as well as the global financial markets volatility," Dyukov told reporters on the sidelines of the Eastern Economic Forum.

"But this is by no means the oil market's first price correction. I think prices will stabilize in the near future," Dyukov said.

He said the OPEC+ alliance needed to weigh all these factors before deciding on aspects of the deal and voluntary reductions.

"I think that impulsive decisions made in the heat of the moment should never be made. There is still time until October to analyze and assess the situation. OPEC+ has said many times that it is an effective tool for maintaining global oil market stability. If any adjustments are needed then I'm sure that the countries party to the deal will make them," he said.

Sources among OPEC+ delegates told Bloomberg on September 4 that the alliance was close to a decision to delay the scheduled production hike of 180,000 barrels per day in October. They said the drop in oil prices below $73 per barrel at the beginning of the week, their lowest since the end of 2023, prompted the rethink.

The reduction of 2.2 million bpd announced in November last year is valid until October 2024, and then it gradually rolls back by 180,000-200,000 barrels per day on a monthly basis throughout the year.

However, the volunteer countries of Russia, Saudi Arabia, Algeria, Iraq, Kuwait, the United Arab Emirates, Kazakhstan and Oman have said they could refuse to increase or reverse it depending on the market situation.