Novak said about oversupply in the oil market

© RIA Novosti / Alexei Vitvitskiy in fotomancer of energy of Russia Alexander Novak. Archival photoNovak said about oversupply in the oil market© RIA Novosti / Alexei Vitvitskiy the image Bank

Softer U.S. sanctions against Iranian oil than expected has caused oversupply in the market, in the face of such high volatility OPEC+ should not make a hasty decision, said the head of the Ministry of energy Alexander Novak.

«I think that very many factors affect the changes that we see in the market, in terms of balancing. We said earlier that one of the most important factors for the balance of the oil market — those sanctions, which can be undertaken with respect to Iran,» Novak told reporters.

«I can tell you that a month ago, market sentiment was that there will be a shortage of supply, and everyone was talking only about who will cover this deficit. Should have taken a more lenient sanctions, again as a result of political factors, we see that it is now the oversupply in the market, there is a high volatility in the market. Moreover, this volatility may soon, so now is not the time to take hasty decisions, you need to look carefully at how the situation will develop,» — said the Russian Minister.