Russia Confirms OPEC+ Cooperation Will Persist Despite UAE Departure
Russia's Stance on OPEC+ After UAE Exit
MOSCOW, April 30 (Reuters) - Russia's Deputy Prime Minister Alexander Novak said on Thursday that the OPEC+ group of leading oil producers would continue working together despite the departure of the United Arab Emirates, Russian news agencies reported.
Oil Market Outlook Following UAE's Departure
According to the reports, Novak said he did not expect an oil price war to emerge following the UAE's exit given a global oil deficit.
Implications of UAE's OPEC Exit
The UAE said on Tuesday it was quitting OPEC, dealing a blow to the oil producers' group as an unprecedented energy crisis triggered by the Iran war exposes discord among Gulf nations.
OPEC+ Production Rankings
The UAE was the fourth-largest producer in OPEC+, which comprises OPEC and its allies, while Russia is second, behind Saudi Arabia.
Statements from Russian Officials
"In the current situation, it is hard to talk about a price war when there is a shortage in the market. What we are seeing instead is the deepest crisis in the industry," Novak was quoted as saying by Interfax news agency.
Market Imbalances and Logistical Disruptions
"Large volumes of oil are not reaching the market today, while demand significantly exceeds supply. This has created an imbalance due to serious logistical disruptions, including the situation in the Middle East," Novak said according to Interfax.
Russia's Commitment to OPEC+
Novak also reiterated that Russia will remain in OPEC+, which was formed in 2016.
Reporting Credits
(Reporting by Anton Kolodyazhnyy and Vladimir Soldatkin. Editing by Andrew Cawthornbe and Mark Potter)
