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Russias energy ministry does not rule out oil shortages on global market if demand grows

May 20/ 08:21

Jeddah. Russia’s energy ministry does not rule out possible oil shortages on the global market this summer if demand grows, Russian Energy Minister Alexander Novak said on Sunday after a meeting of the Joint OPEC/Non-OPEC Ministerial Monitoring Committee (JMMC).

"Oil shortages are possible in the summer is demand (for oil - TASS) grows like in previous years. Typically, it goes up on the winter period by two million barrels a day. So, it will be necessary to keep a close eye on the situation and react quickly in order to prevent shortages," he said.

Novak noted that global oil reserves within the Organization for Economic Cooperation and Development (OECD) are currently by 13 million barrels higher than the five-year average. In his words, this situation stems from several factors, including a demand lower than forecasted.

However he found it difficult to say when the market balance could be reached. "It will largely depend on the demand in the second half of the year,told TASS. You know, demand typically grows in summer and drops in winter. So, let us wait and see the situation from the point of view of the summertime demand," he added.

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