Russia: we took into account the slowdown in oil demand during the extension of the production agreement

MOSCOW (Reuters) – Russia has taken into account the possibility of a slowing of oil demand by extending its global production agreement with the Organization of the Petroleum Exporting Countries (OPEC) earlier this year, announced Friday the Ministry of Energy.

She added that the International Energy Agency's estimates released today largely match the ministry's expectations.

"We have taken into account the possibility that growth in oil demand will slow down to the indicated levels (by the International Energy Agency) or even more," the ministry told Reuters.

Russia's oil output reached 11.32 million barrels per day (bpd) between August 1 and 8, against an average of 11.15 million bpd in July, two sources close to Reuters told Reuters on Friday. Ministry of Energy.

The level is higher than what Moscow promised under a production reduction agreement with OPEC.

Russia is committed to reducing the production of 11.41 million bpd pumped in October 2018 by 228,000 barrels per day.

Russian Oil Minister Alexander Novak said last month that Russia's oil output is expected to reach 556 to 557 million tonnes this year, or 11.17-11.19 million bpd, in line with the pledge.

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Oil prices rose on Friday, buoyed by expectations of further cuts in OPEC production, despite a report by the International Energy Agency (IEA) that the growth in demand has fallen to its lowest level since the 2008 financial crisis.

At 13:55 GMT, Brent futures rose from US $ 1.48 to US $ 58.86 per barrel. West Texas Intermediate (WTI) crude futures were up $ 1.80 to $ 54.34 per barrel.

Global oil demand in the first six months of 2019 has grown at the slowest pace since 2008, said the International Energy Agency, penalized by growing signs of a global slowdown and by the intensification of the trade war between the United States and China.

Oil prices fell more than 20% from the peaks reached in April.

In July, OPEC and its allies, led by Russia, an alliance known as OPEC +, agreed to extend reductions in oil production until March 2020 in the aim to boost crude prices.