Oil Demand Recovers 20% in May: Energy Minister

Oil demand remains at a low level but the demand in May increased by 20% against April, Russian Energy Minister Alexander Novak said on Monday, as reported by TASS.

“Despite the grave situation, the industry continues working. We also see that motor gasoline prices remain flat year-to-date and diesel fuel prices increased by just 1.5% from the year-start,” the Minister noted.

The oil surplus is about 7-12 mln barrels per day so far but the Energy Ministry expects market rebalancing owing to demand growth in June – July, Novak added.

Oilfield services

The demand for oilfield services plummeted 50% and the government has prepared support measures for the sector.

“We have prepared a range of proposals related to support of [oilfield service] companies, with the demand for their services down by 50% approximately. [The demand] should be brought to at least 80% of the level, as it was last year,” the source noted.
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