Russian oil Minister Novak points to winter risks for oil supply

 Novak points to winter risks for oil supply

There are no discussions within the so-called OPEC+ group about the possibility to boost output, Russia’s Minister of Energy Alexander Novak said on Tuesday. The domestic media quoted him as saying that the representatives of the Organization of the Petroleum Exporting Countries and Russia and its bloc need to keep monitoring the balance in the market. However, Novak also stressed the winter would bring risks regarding the stability of supply and demand. Russia will find it harder to cut oil output in winter than other producers because of the cold conditions at Russian oil fields, Interfax news agency quoted Energy Minister Alexander Novak as saying on Thursday. Oil producers’ organization OPEC has said it is ready to cut production, but that is conditional on Russian contributing to the reduction in output. “We’ve said it previously … for us it is much more difficult to cut than for other countries, stemming from our climatic conditions. That is a specific characteristic of our oil production sector,” Interfax quoted Novak as saying. He noted the country’s midterm strategy is calculated on the basis of $50 per barrel. Separately, Kremlin spokesman Dmitry Peskov said Saudi Arabia assumes a different price in its fiscal policy. He claimed both the government in Moscow and the de facto leader of OPEC want to prevent it from exceeding a “reasonable level” as well as ensure that crude doesn’t drop too much. Russia is very resistant to fluctuations in oil prices, according to the administration official.