CEO of Russian Oil Company: OPEC+ oil production increase plan may be completed a year ahead of schedule.

Gate News bot news, Igor Sechin, the CEO of Russia's state oil company, stated on Saturday that the OPEC+ group, composed of major global oil producers, may advance its production increase plans by about a year. He also mentioned that, in light of the conflict between Israel and Iran, OPEC+'s decision to accelerate production increases now seems to be visionary and reasonable.

Despite weak oil prices and slowing demand, the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia decided in April to increase production in May, with the increase exceeding expectations, a decision that shook the oil market.

Since then, OPEC+ has decided to continue implementing a production increase plan that exceeds the original scale. Sheqin said that the production increase announced by OPEC+ since May of this year is more than three times the initial plan of the alliance. In addition, the total production increase by OPEC+ may be advanced by a year compared to the original plan, but no details were provided.

He added, "Given the uncertainty surrounding the conflict between Iran and Israel, the strong decision made by OPEC leaders to increase production now seems very visionary, and from a market perspective, it is also reasonable, considering the interests of consumers."

OPEC+ eight countries will initiate a slight increase in production in April, followed by a tripling of the increase in May, June, and July. In addition to these eight member countries starting to lift the reduction plan of 2.2 million barrels per day in April, OPEC+ also has two additional layers of reduction mechanisms, which are expected to last until the end of 2026.

During her speech at the St. Petersburg International Economic Forum, Xie Qin also stated that due to low inventory levels, there will not be an oil surplus in the long term despite rising production; however, the increase in electric vehicle usage in China may impact oil demand.

He also revealed that the company's budget for this year is based on an oil price benchmark of $45 per barrel. This price level is the new price cap that the EU intends to set for Russian crude oil imports, with the current cap being $60.