Russia Vows Continued Investment, Opec ‘Coordination’

Top Russian officials, including President Vladimir Putin and the country’s oil executives, have expressed support for Opec-plus’ market-management strategy, which they say has kept oil markets in check amid the recent turmoil in the Middle East. At last week’s gathering in St. Petersburg, Igor Sechin, the powerful CEO of state producer Rosneft, called the group’s decision to triple its previously planned production increases in May, June and July “far-sighted” and “justified,” particularly in light of the conflict between Israel and Iran, now paused, that temporarily rattled oil markets. Russian leaders also highlighted the key role their oil and gas industry plays in keeping global markets well supplied despite continued challenges to the domestic sector. Opec officials joined the high-profile cadre of Russians at the annual St. Petersburg International Economic Forum (SPIEF) last week. Putin stressed that many countries within Opec-plus have the ability to increase production to mitigate any future impacts of the Mideast conflict but that he hopes the group would only do so in a “coordinated” manner to ensure stability in global markets. Alexander Dyukov, the head of Gazprom Neft, Russia’s third-largest producer, told journalists on the sidelines of the forum that Opec-plus production is increasing amid seasonal strength in demand.