Russia's Novak says OPEC+ should continue oil output increases

By Vladimir Soldatkin and Olesya Astakhova

ST PETERSBURG, Russia, June 19 (Reuters) - Russia's top oil official said on Thursday that OPEC+ oil producers should proceed with plans to increase output, noting rising summer demand.

"To ensure and balance it, we need to return to the market part of those voluntary reductions that were adopted in 2023," Russian Deputy Prime Minister Alexander Novak said at an economic forum in St Petersburg.

Eight members of OPEC+, which groups OPEC and other producers led by Russia, are unwinding voluntary production cuts of 2.2 million barrels per day (bpd).

The eight - Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Oman, Algeria and Kazakhstan - have agreed monthly increases for April through July, when they will meet to decide on August.

Russia had favoured pausing the increases for July but eventually backed a boost of 411,000 bpd.

"We have the opportunity to both increase and reduce production volumes," Novak said.

OPEC Secretary General Haitham Al Ghais, who spoke on the same panel as Novak, noted that demand continues to rise, particularly in the developing world.

Asked about the risks posed by fighting between Israel and OPEC member Iran, Novak said OPEC+ should calmly execute its plans and not scare the market with forecasts, echoing similar comments from Saudi Arabia's energy minister.

The minister, Prince Abdulaziz bin Salman, when asked at the same event if Saudi Arabia and Russia would step in to offset any loss of Iranian oil supply to the market, said OPEC+ would "only react to realities".

Oil prices have risen more than 10% since Israel attacked Iran last week.

While the two have targeted energy infrastructure in each other's country, oil production and exports from the region have not been disrupted.