OPEC+ expects gradual growth in global oil demand from March, market balanced for now - Russian deputy PM

MOSCOW. Feb 3 (Interfax) - OPEC+ expects a gradual increase in global oil demand from March, while the global market remains balanced for now, Russian Deputy Prime Minister Alexander Novak told journalists.

"Currently we are observing a balance of supply and demand [on the global oil market], and prices are stable. We generally expect a growth in demand; this was discussed at the latest meeting [of OPEC+ on Sunday]," Novak said.

The expected demand growth is related to seasonal factors; as automobile and air transportation activity increases, the dynamics will rise, he said.

"Starting from March-April, somewhere around there, demand gradually grows. This will be an additional factor for ensuring balance," he said.

As reported, eight OPEC+ countries participating in voluntary oil production restrictions decided to maintain a pause in increasing oil production in Q1 following another monthly meeting.

In this way, quotas for March will be set at the level of those in effect in December, as was planned earlier. Compensation schedules remain in effect for a number of countries. The most significant compensations, i.e., additional production cuts relative to the quota level, must be implemented by Kazakhstan.

According to the current OPEC analysts' assessment, global oil demand growth in 2026 will amount to 1.38 million barrels per day, reaching 106.52 million bpd. In Q2, they expect demand at the level of 105.57 million bpd (20,000 bpd more than in Q1), and at the level of 107.05 million bpd in Q3.