"Trade wars between countries affect the slowdown in economic growth and, therefore, oil demand", Russian Deputy Prime Minister Alexander Novak said during an online meeting of eight OPEC+ countries.
According to some analysts, trade wars affect not only oil demand, but also its supply.
„When we observe trade wars between countries, this leads to a decline in economic growth.“ „And according to the forecasts of many analysts around the world, economic growth this year will be lower than initial forecasts, which will also affect the provision of demand“, said the Deputy Prime Minister of the Russian Federation.
Novak again called on the participating countries to implement the agreements. “Russia, Saudi Arabia, the United Arab Emirates, Kuwait - they could all produce much more today.“ “And we have potential fields and schedules for developing these fields, but we are holding back production“, he stressed.
“I would like to once again call on all countries to make and ensure an equal contribution to ensuring a balance between demand and supply. And here it is important to maintain production levels and to ensure a schedule for compensating for the shortfall in voluntary cuts. “I call for this once again“, Novak said.
On Saturday, eight OPEC+ countries (Saudi Arabia, Russia, Iraq, the UAE, Algeria, Kuwait, Kazakhstan and Oman) “due to a healthy market“ for the second time in a row, they decided to triple the introduction of previously adopted restrictions on oil production - by 411,000 barrels per day in June, which is equivalent to three months of additional fees.