Skip to main content
//empty //empty

Russian Direct Investment Fund chief executive Kirill Dmitriev is seen at the St. Petersburg International Economic Forum (SPIEF), Russia June 7, 2019.

MAXIM SHEMETOV/Reuters

The head of Russia’s sovereign wealth fund Kirill Dmitriev sees no point in extending strict global oil output cuts as world economies and oil demand recovers from the depths of the coronavirus crisis, he told the RBC Daily newspaper.

The comments from Dmitriev, who is one of Moscow’s top negotiators in oil talks, indicate that Russia wants curbs to be eased from August as envisaged by the existing plan.

The Organization of Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are cutting output by a record 9.7 million barrels per day (bpd), some 10% of global supply, after demand plunged by up to a third during the crisis.

Story continues below advertisement

A panel of the OPEC+ producers left the door open on Thursday to extending or easing those cuts from August, while pressing a number of countries, such as Iraq and Kazakhstan, to improve their compliance.

“We already see that economies have started to emerge from the coronavirus and markets are recovering, supporting oil demand, so there is no point to extend strict curbs for longer than a month (after July),” Dmitriev told RBC Daily.

The existing plans calls for the cuts to fall to 7.7 million bpd from August and stay at that level until December. It then envisages further cuts, easing to 5.8 million bpd from January 2021 through April 2022 when the pact is due to expire.

Oil prices have recovered to $42 per barrel from a 21-year low of below $16 in April. This is back at the level where Russia is balancing its budget and energy minister Alexander Novak said this week Moscow is happy with the current price.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies