Oil demand continues to grow in Asia, while China and some other countries have been replenishing their crude stockpiles, Alexander Dyukov, the head of Russian oil major Gazprom Neft SIBN said on Thursday, TASS news agency reported.

OPEC+ group agreed earlier this month to further raise oil production from October as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months due to an anticipated weakening of global demand.

Dyukov, the head of Russia’s top four oil producer, however, said demand was still robust.

“Global oil consumption rises in the summer. In fact, in Asia, consumption continues to rise in the autumn. Furthermore, we see that a number of countries, including China, are currently replenishing their strategic oil reserves,” Dyukov was quoted as saying.

The International Energy Agency said last week global oil supplies would rise more rapidly than expected this year because of planned output increases by the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies such as Russia, according to an agency report.

However, OPEC’s own report made no change to its relatively high forecasts for oil demand growth this year and next, saying the global economy was maintaining a solid growth trend.

Dyukov also said it is expected that Gazprom Neft will increase both crude production and refining volumes this year, TASS reported, without providing figures.
Source: Reuters