Russia’s Novak: OPEC+ sees no need for further oil output cuts

Russian Deputy Prime Minister Alexander Novak said on Wednesday, “OPEC and its allies (OPEC+) sees no need for further oil output cuts despite lower than expected Chinese demand.”

Additional takeaways

The global oil market is balanced.

OPEC+ is always able to adjust deal parameters.

We don't see oil market deficit after OPEC+ cuts starting from May.

Russia's oil tax revenue is higher thanks to lower uUals discount.

Russia's gas condensate output to decline in 2023.

Russia to cut oil and gas condensate output by 20 mln to 515 mln t in 2023.

Russia achieved the necessary oil output cut level in April.

Russia is to redirect 140 mln t of oil and oil products meant for Europe to Asia in 2023.

Market reaction

WTI is testing daily highs near $74.70 on the above comments. The US oil is adding 0.45% on the day, as of writing.