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Weakens OPEC limits oil production

OPEC August 1 will begin to check the stability of the recovery of the oil market: the Alliance will move to the second stage started in may of the deal to reduce output, which is the easing of restrictions with unprecedented 9.7 million million barrels per day to 7.7 million.

It is expected that this phase will last until the end of the year and to avoid excessive overheating of the market. As reported by Minister of energy of Russia Alexander Novak, in July, the oil market was fairly balanced and was able to go in a shortage of supply due to transaction-OPEC and reduce oil production in several other countries.

Novak called the priorities for the oil companies

Companies make a decision on the execution of contracts for the supply of oil in connection with the increase in production by OPEC , but first it is important to provide the Russian market, told reporters energy Minister Alexander Novak.

"We have basically always increase in the summer goes to the domestic market. Of course, companies make decisions regarding the execution of their contracts, but it is important for us to ensure first and foremost the domestic market, it usually grows in the summer, so believe it. Approximately 400 thousand barrels increase," said he, answering the question of how much can go of oil in the domestic market, and how much for exports, after Russia will begin to increase production in the framework of the weakening of OPEC .

Novak called the world oil market stable

The oil market is balanced and stable enough in June, the decline in demand due to coronavirus was 10 million barrels per day to 25 million barrels per day in April, said the head of the energy Ministry of Russia Alexander Novak.

"We see that the market and demand is restored. If in April the decrease in demand was approximately 25 million barrels per day in the whole world, today this recovery has occurred to a greater extent, and in the month of June we observed a decrease in demand by about 10 million barrels," - said Novak at the press conference following the meeting of the Committee of Ministers on monitoring of OPEC .

Novak has predicted a restoration of pre-crisis demand for oil

Pre-crisis demand for oil can be reached no earlier than 2021, perhaps within two to three years, said energy Minister Alexander Novak in interview to the newspaper Handelsblatt.

"Of course, not this year. We hope that this will happen in 2021. But, maybe it will take two or three years", - said the Minister, answering the question, when can be restored to pre-crisis level of oil prices.

Novak called the US action against the "Nord stream – 2" protectionism

Minister of energy of Russia Alexander Novak said that he did not know whether U.S. sanctions to block "North 2", says such acts of protectionism and interference in the Affairs of sovereign countries.

"I don't know, it can block the project or not, I can only Express my opinion that this is, in my opinion, pure protectionism and interference in the Affairs of other sovereign States," said Novak, Bloomberg in response to the question of whether U.S. sanctions block the project "Nord stream 2".

The government wants to take 60% of the costs upon transfer of cars on gas

Minister of energy Alexander Novak suggested that Deputy Prime Minister Yury Borisov to increase the share of subsidies from the budget for the transferring vehicles to individuals and small businesses from gasoline to natural gas two times, according to RBC with reference to the letter of official.

Thus, subsidies are not 30% and 60% of the cost of the conversion. Another 30% of the costs will be paid by "Gazprom" at the expense of the marketing programs of its subsidiary company "Gazprom gas fuel". Car owners will be left to pay only 10%.

Novak revealed details of a new agreement by OPEC to reduce production

OPEC extended the reduction of oil production to 9.7 million barrels per day in July, said the head of Ministry Alexander Novak.

According to the Minister, the decision was made to strengthen the impact of the deal reached in mid-April.

Novak assessed the measures taken by OPEC to support oil market

Joint action by OPEC has allowed to avoid serious consequences of the significant drop in oil demand in history, said the Minister of energy of Russia Alexander Novak.

"I would like to Express my gratitude to all the participants of the Ministerial meeting of OPEC, held on 9 and 12 April this year, for the constructive decisions that have been taken for the joint action, which allowed us to avoid serious consequences today, the most significant in the history of the decline in demand on the world oil market", - said Novak.

FAS issued a warning to the head of the Independent fuel Union

The Federal Antimonopoly service (FAS) of Russia issued a warning to the President of the Independent fuel Union (NTS) Pavel Bazhenov because of the statements about the upcoming increase in prices of petroleum products, according to service.

"FAS Russia warns the President of the Union of independent participants of the fuel market "Independent fuel Union" from taking actions that may violate the law on protection of competition Public statements about the upcoming increase in prices of petroleum products in the absence of objective reasons unacceptable," - said in the message.

In the state Duma has considered the request of the German duties on American gas

Deputy Dmitry Novikov in an interview with TV channel RT was considered a possible tightening of economic policy in Germany towards US is natural.

Earlier, the head of the Bundestag Committee on energy Klaus Ernst called Washington's pressure on the "Nord stream – 2" encroachment on the sovereignty of the country and warned that Berlin may impose punitive duties on American gas.

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