Russia’s push to raise oil production came independently, the country’s oil minister said Saturday during the OPEC summit in Vienna, dismissing the suggestion which public pressure by the U.S. played a role in its decision.
OPEC ministers announced a deal on Friday which will increase oil supplies by the producer group, which has been capping output in order to balance the market in addition to also boost prices for the last 18 months. although the lack of clear output targets left markets confused.
Ahead of the oil cartel’s meeting This specific week, President Donald Trump used his Twitter account to prod OPEC into ramping up production, as fuel prices inside the U.S. have soared ahead of the summer driving season. In many parts of the U.S., gas prices have steadily climbed to around $3 per gallon, a pain threshold which can eat into consumer spending.
When asked if tweets by the president urging OPEC to keep prices down factored into the country’s move, Alexander Novak told CNBC’s Steve Sedgwick which “the US is usually just another consumer, like the rest of consumers, in addition to also when we make decisions we take into account the interests of the consumers, not just those of producers.”
The minister added: “I might like to stress which our offer to raise production volumes in June was made well before the appearance of certain tweets. I’d like to note which Russia had proposed to ease the quotas back at the end of last year, in addition to also we began to discuss in detail in February This specific year.”
The comments followed the news which OPEC in addition to also non-OPEC members, including Russia, have reached a compliance agreement to raise oil output by one million barrels per day (bpd) in order to balance supply in addition to also demand inside the second half of 2018.