Gazprom says that the US and Chinese purchases of strategic reserves may offset Russia's oil surplus.

The head of Russian oil producer Gazprom said that the U.S., China and other countries' purchases of strategic oil reserves will offset any global surplus to keep oil prices in check.

The eight members, who are OPEC+ and include Russia and other producers, have decided to increase production for the months of April, July and August.

Alexander Dyukov CEO of Gazprom, the oil arm from Russian energy giant Gazprom, stated that OPEC+'s production growth is not likely to cause a market overstocking in the near future.

He told journalists in Saint Petersburg that he did not expect it to have any impact on prices.

He said that the new U.S. Administration has given itself the task to replenish strategic oil reserves, which are currently at 400 million barrels. This is less than 20 days' worth of consumption. The storage capacity is over 700 million barrels.

He added, "China has announced it will accelerate its replenishment of strategic oil reserves planned for this coming year."

(source: Reuters)