2 Apr 2020 17:06

Russian oil cos will not increase oil production yet, this would be impractical - Novak

MOSCOW. April 2 (Interfax) - Russian oil companies will not increase oil production yet, as this would be impractical, Energy Minister Alexander Novak said during an interview with Ekho Moskvy radio station.

"You asked why Russia is not increasing production. In my opinion, it is simply not practical to do so in the current situation. These are reasonable decisions that our companies are taking," Novak said. He also said that Russian companies have sold April volumes, albeit at a low price.

"Just yesterday, I talked via videoconference with the leaders of all our oil and gas companies, and we discussed the situation on the market overall and on the domestic market. All our assessments agree on one thing, that the market situation will worsen in the next few weeks, and demand [for oil] will continue to drop. Nevertheless, our companies note that April volumes are all sold despite decreased consumption at European refineries. Our oil is quite competitive, and we do not see any problems in April with placement. Of course, the price of oil is low, and this does not satisfy anyone," Novak said.