Russian Energy Minister Alexander Novak expressed hope that the OPEC+ deal would be fully agreed on and signed already in the coming days.

"I hope that the deal, which is being planned, will be fully agreed and signed in the coming days. This deal involves the implementation [of the deal] for the two whole years. If previously we had agreed for six months in order to smooth out and remove the excess from the market, then today we are talking about the need to interact for the entire period of the demand recovery, the restoration of the global economy," Novak said in a televised interview.

Speaking further, the minister noted that overcoming the crisis in the oil market will take a long time, at least till the end of 2020, with the demand likely to recover at a slower pace than expected before the crisis.

"We need to survive the peak of declining demand, and for this, we need to stretch the demand's decline over time, which means a decrease in production. I think that getting out of today's situation in the oil market will take us a long time, best case scenario at least until the end of this year," Novak said in a show of the Rossiya-1 channel.

He said the global consumption and demand would be increasing at a slower pace than before the crisis.

"I think that demand will not be recovering as fast as we would have expected before the crisis. Why? Because during the crisis everyone understood that in order to hold some meetings, for example, or to communicate with each other, it is not necessary to fly and travel so much, and you can do it all via video conferencing. We realized that you can do it much more productively today," Novak said.

Earlier this week, G20 energy ministers discussed the possibility of reaching a new deal on oil output cuts. Prior to that, OPEC+ talks were held via video conference and resulted in the adoption of a new declaration which outlined a three-stage reduction of oil production. It was accepted by all states except Mexico. 

New OPEC+ Deal Could Mean Over 15 Million Barrels Per Day in Cuts, Russian Investment Fund CEO Says

Late last week, OPEC and non-cartel oil producers reached a new major agreement stipulating a collective reduction in oil output by around 10 million barrels per day effective 1 May.

Russian Direct Investment Fund (RDIF) CEO Kirill Dmitriev told the broadcaster CNBC on Monday that the total oil production decrease by OPEC+ and other nations may reach over 15 million barrels per day (bpd), a statement that came after a new OPEC+ agreement which stipulates cutting oil output by 9.7 million bpd as of 1 May.

“We believe that the deal is for more than 15 million barrels a day if you count G20 nations”, Dmitriev said, adding the hope is that US production cuts would amount to over 2 million barrels per day in 2020 thanks to what he touted as a “historic” agreement.

He noted that the deal would “dramatically” support oil prices which Dmitriev said could nosedive “a lot below $10 a barrel”.

“[…] The deal does not mean that the oil price will be exceptionally high. […] We see that the markets are stabilising and this is very important. Of course, we will still have some volatility in oil prices but the support, the floor for oil prices is there. This is important for the stability of nations. It is good for producers and for consumers”, he pointed out.

The RDIF chief executive also praised the “huge role” of the Russian and US presidents as well as the King of Saudi Arabia to “drive this deal forward”.

“This is an example where President Trump started working with President Putin, [and] the King of Saudi Arabia to save US jobs. This cannot be criticised by critics as Russia and the US just working together. This is an example of us working together for the best of our nations”, Dmitriev underscored.

He concluded by reiterating the paramount importance of the new OPEC+ deal in terms of containing “an oil price spike in the future”.

Dmitriev stressed that the deal will be “really good” not only for the economies of Russia and Saudi Arabia but for oil consuming countries as well.  

“It is a win-win situation for many nations. It is not the message just about this deal. It is a message that if it is needed our countries are willing to act together to solve this big issue”, he said.

OPEC+ Clinch New Deal on Oil Cuts

The remarks come after Russian President Vladimir Putin on Sunday held separate telephone talks with US counterpart Donald Trump and the King of Saudi Arabia, Salman bin Abdulaziz Al Saud to discuss the newly clinched OPEC+ deal on the “phased voluntary reduction of oil production”, according to a Kremlin press service statement. The statement said that during the talks, “once again the importance of the OPEC+ deal […] was noted”.

It was echoed by OPEC Secretary General Mohammed Barkindo who earlier applauded the deal's “production adjustments” which he said “are the largest in volume and the longest in duration”.  

“We are witnessing today the triumph of international cooperation and multilateralism which are the core of OPEC values”, Barkindo stressed.

The statement was preceded by OPEC+ finalising the deal agreed upon at the group online meeting earlier on Sunday, an agreement that envisages cutting global oil output by about 10 million barrels per day as of 1 May. The deal was clinched after a few days of intense talks between OPEC+ members and Mexico’s reluctance to stick to 400,000 bpd offered by the group. The sides arrived at a compromise after the US agreed to reduce 300,000 bpd in production on Mexico's behalf.