9 Jun 2018 14:15

OPEC+ must opt to relax oil quotas, market close to overheating - Dyukov

MOSCOW. June 9 (Interfax) - It is imperative that OPEC+ countries decide to increase oil production at their meeting on June 22-23, Gazprom Neft CEO Alexander Dyukov said in an interview with the Rossiya 24 television channel.

The market is close to overheating, and no one is interested in the high volatility that might arise from this, Dyukov said.

"We expect this [trimming the oil production cut quotas] will happen and believe that this will be an absolutely appropriate step. We see that prices are high: about $75-$80 per barrel. At present the market is close to overheating," he said.

"We understand that fresh market overheating will lead to excessive investment, which will lead to excessive oil on the market and a subsequent decline in oil prices. That is, we would once more enter a situation of high volatility. Absolutely no one is interested in volatility, neither producers nor consumers. Therefore, it would be an absolutely reasonable step to raise the quotas for those who have joined this deal," he said.

"We believe that the moment has arrived when it makes sense to maintain the OPEC+ agreement, but to become more flexible in relation to quotas. The situation on the market is changing, it is necessary to react in a timely fashion, otherwise in a certain amount of time we will have an overheated market. This is absolutely obvious at the moment that the quota should be increased. This will benefit everyone," Dyukov told journalists.