Novak: Without ‘OPEC +’ agreement, oil market would collapse

The global oil market would have collapsed without the “OPEC +” alliance agreement, due to the excess production of black gold, Russia’s Deputy Prime Minister Alexander Novak said.

The OPEC+ alliance of oil producers will continue to restore supply to meet growing demand, Novak said.

In an exclusive interview with Rossiya 24 TV channel to mark the fifth anniversary of the first OPEC+ agreement reached in December 2016, Novak said that in 2022 the oil market could reach levels that were before the coronavirus pandemic

According to ‘Russia Today’, the senior official indicated that the global oil market would have collapsed without the agreement, to the extent that there would be no room for storing oil.

He added that the “OPEC +” agreement, in which oil production was regulated for a period of five years, paved the way for re-attracting investments to the oil industry, as well as restoring confidence in the oil sector.

OPEC has already added 2 million barrels per day to global supply and will continue this course of action through the early months of 2022.