Russian Energy Minister Alexander Novak said on Friday he hoped a meeting of G20 nations in Japan would provide clarity for OPEC and non-OPEC oil producers as they consider whether to extend a deal on cutting crude supplies beyond June.
The presidents of the United States and China are expected to discuss their ongoing trade war at the G20 summit. The outcome of the row will affect global economic growth and oil demand.
“The market is currently in a very interesting phase. On the one hand, it seems to be balanced in terms of supply and demand. But on the other hand, there are so many uncertainties,” Novak said.
“We hope that there will be more clarity and more visibility after the G20 summit in Osaka,” he said, adding that he expected the oil producers to take a balanced decision about supplies.
The Organization of the Petroleum Exporting Countries and non-OPEC states, a group known as OPEC+ that has been led by Saudi Arabia and Russia, meet in Vienna next week to discuss whether to extend or adjust a deal on production.
The pact, which has been in place since Jan. 1, expires after June 30. Novak, who is expected to meet Saudi Energy Minister Khalid al-Falih at the G20 summit, said Russia and Saudi Arabia were still discussing the oil deal.
“We expect balanced decisions to be taken by the OPEC+ countries, which would help the market stay balanced,” he said.
Russian President Vladimir Putin, who is due to meet Saudi Crown Prince Mohammed bin Salman on the sidelines of the G20 gathering, has said the OPEC+ pact has stabilized the oil market.
At a meeting of the BRICS, a term used to describe a group of nations comprising Brazil, Russia, India, China and South Africa, Putin proposed talks on steps to “harmonize global energy markets and reduce energy price volatility” by the BRICS.
China and India are among the world’s top oil consumers while Russia, the world’s second biggest oil exporter after Saudi Arabia, supplies oil to both of those nations.