OPEC+ Oil Production Hike Justified By Iran-Israel Conflict - Rosneft CEO

ST. PETERSBURG, June 21 (Bernama-Sputnik/RIA Novosti) -- The decision of the OPEC+ group of major oil exporters to boost production is far-sighted and reasonable given the ongoing Iran-Israel conflict, Russian oil giant Rosneft CEO Igor Sechin said on Saturday, reported Sputnik/RIA Novosti.

"The decision taken by OPEC+ leaders to boost production seems very far-sighted at the moment, and from the market's point of view, even reasonable, given the interests of consumers and the uncertainty about the scale of the Iran-Israel conflict," Sechin said in a keynote address at the 2025 St. Petersburg International Economic Forum's (SPIEF) Energy Panel.

Despite the increase in OPEC+ production, an oil glut is unlikely in the long term because world reserves are at their lowest in five years, Sechin said.

"Despite the announced production increase, there are no signs of any surplus oil glutting the market in the long term. Global oil reserves are now at their lowest levels in the last five years," Sechin added.

Eight OPEC+ countries — Russia, Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman — have voluntary obligations additional to quotas. Production limits of 1.65 million barrels per day (bpd) are in effect until the end of 2026.

An additional 2.2 million bpd cut has been gradually phased out starting April. Starting in May, OPEC+ agreed to accelerate the withdrawal from these restrictions: since May, they have produced 411,000 bpd more than in April. Production will also increase by 411,000 bpd in June and July.

The Russian city of St Petersburg is hosting the 28th edition of SPIEF from June 18-21 under the theme of "Shared Values: The Foundation of Growth in a Multipolar World." The Rossiya Segodnya international media group, RIA Novosti's parent company, is the forum's information partner.

Rosneft has put an oil price of US$45 per barrel down in its business plan for 2025, and US$42-43 for the next year, CEO Igor Sechin said on Saturday.

"We do not know what geopolitical factors will affect the market. Yet whatever it may be, our company Rosneft has the price of US$45 per barrel written down in its business plan for this year, and US$42-43 per barrel for next year. We do not want to depend on this volatility," Sechin said.

--BERNAMA-SPUTNIK/RIA NOVOSTI