Russia Rules Out OPEC+ Exit Amid “Deep Crisis” In Global Oil Market – Novak

MINERALNYE VODY (Russia), April 30 (Bernama-Sputnik/RIA Novosti) -- Russia, as a major oil producing country, is not going to leave OPEC+, Russian Deputy Prime Minister Alexander Novak said on Thursday, reported Sputnik/RIA Novosti.

On Tuesday, the United Arab Emirates announced it would leave OPEC and OPEC+ effective May 1. The UAE Foreign Ministry described the decision as a sovereign and strategic choice based on its long-term economic vision, adding that it would continue to work with partners and support global energy markets after its withdrawal.

"As the largest oil producing country, we are not going to withdraw from this cooperation," Novak told reporters on the sidelines of the Caucasian Investment Forum, adding that Russia considers this mechanism effective and useful for the oil market.

He also said Russia had not discussed the UAE’s withdrawal with Saudi Arabia.

At the same event, Novak warned that the global oil industry is facing a deepening crisis, with a large volume of oil currently failing to reach the market.

"We see that the deepest crisis in the industry is continuing, and a huge amount of oil is not entering the market today," he said.

He added that global oil demand is now significantly higher than supply, describing the imbalance as linked to developments in West Asia.

Novak further said that there cannot be a price war in the oil market following the UAE’s withdrawal from OPEC and OPEC+ under current conditions of fuel shortages.

-- BERNAMA-SPUTNIK/RIA NOVOSTI