Russia’s Energy Minister Sees Oil Market Rebalancing By July

Amid the coronavirus pandemic, oil demand has plummeted over the last few months but Russia’s oil minister sees the global supply and demand situation rebalancing within two months, according to RIA sources, cited by Reuters.

Russia’s Energy Ministry expects oil demand to improve in May, and notes that we are already seeing major shifts to global oil supplies, with production cuts—either purposefully or otherwise—rising to nearly 15 million barrels per day.

The global surplus, the energy ministry says, is between 7 million and 12 million barrels per day.

Reuters sources have indicated that OPEC+ wants to keep the existing production cuts beyond the current June expiry in order to rebalance the market.

Saudi Arabia and Iraq—two of OPEC’s largest oil producers, have reaffirmed their commitment to rebalance the oil markets. Saudi Arabia has pledged to cut an additional 1 million bpd on top  of its existing quota. Iraq, however, may find it difficult to achieve…