Russian Prime Minister Alexander Novak stated that OPEC+ production cuts are not happening at present, citing a current shortage in the global oil market and a visible recovery in demand.

Novak, speaking to Reuters via Interfax, indicated that the supply-demand balance has shifted. He noted that ministers will discuss the prevailing market situation and compliance with existing agreements at their upcoming meeting on Sunday.

Market Context

The comments from Novak address ongoing speculation regarding potential further output reductions by the cartel. By highlighting a market shortage, the Russian official suggests that current production levels are aligned with or below demand requirements, reducing the immediate need for additional voluntary cuts.

Upcoming Meeting

OPEC+ ministers are scheduled to meet on Sunday. The agenda will focus on assessing the current market dynamics and reviewing member compliance with the existing production agreement.

US crude oil inventories recorded a sharp draw of -4450K, far exceeding both the previous reading of 95K and the market estimate of -368K, pointing to a significant tightening in domestic supply.

Inventory data at a glance

The latest US crude oil inventory figures showed a dramatic reversal from the prior period, with the actual draw coming in well beyond consensus expectations. The table below summarises the key data points from the release.

What the numbers show

The actual draw of -4450K represents a stark contrast to the previous period's build of 95K, marking a swing of over 4500K between the two readings. The result also came in significantly below the consensus estimate of -368K, indicating that the drawdown was far steeper than analysts had anticipated. Such a wide divergence between the actual figure and the estimate underscores the degree to which supply conditions shifted during the reported period.