“Yes, we are probably deliberately moving, temporarily losing market share, but we are looking forward not to today, but to the future,” Novak told Al Arabiya in an interview. He added that Russia will remain a member of OPEC+ beyond the end of 2025 when the current output cuts are supposed to be phased out.
“Everything is based on the agreements we have here and now,” Novak told Al Arabiya’s Hadley Gamble. “We will see how the situation develops in the markets. Probably we will decide to prolong our relations restricting development on this level or that level.” Speaking about the long-term outlook for oil and the goals of the supply control agreement, Novak said “It is important that, firstly, the energy sectors in exporting countries develop so that investments continue. This requires prices that would satisfy both exporters and importers, so as not to slow down the growth of demand, prices should not be high.” OPEC together with Russia and the Central Asian oil producers, accounts for close to half of global oil production, Reuters noted in a report on the interview. This gives the extended group a bigger influence over global prices although in the past couple of years, this influence has been eroded by the shift to algorithmic trading on the oil market. Indeed, algo trading has come to dominate oil markets, ousting some traditional players and making the price outlook even harder to analyze. This has been a big part of the reason why OPEC+ delayed the start of phasing out the output cuts, initially planned for this month. Now, OPEC+ expects to start bringing back supply to market in December, if the market conditions are more favorable.
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Bear trap forming