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Sechin: No oil glut seen long-term

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Sechin: OPEC+ may speed up oil output by a year

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Putin agrees with OPEC assessment of high oil demand

(Recasts, adds quotes, background throughout)

By Olesya Astakhova and Vladimir Soldatkin

ST PETERSBURG, Russia, June 21 (Reuters) - OPEC+ group

of leading global oil producers could bring forward its output

hikes by around a year from the initial plan, Igor Sechin, head

of Russia's largest oil producer Rosneft, said on

Saturday.

He also said that the decision by the OPEC+ to speed up

output increase now looked far-sighted and justified in the

light of the confrontation between Israel and Iran.

The Organization of the Petroleum Exporting Countries and

its allies, led by Russia, shocked oil markets in April by

agreeing a bigger-than-expected output hike for May despite weak

prices and slowing demand.

OPEC+ has since decided to continue with more than planned

hikes.

"The announced increase in production since May of this year

is three times higher than the alliance's initial plan. In

addition, the entire increase in OPEC+ production could be

shifted a year ahead of plan," he said without elaborating.

"The decision taken by OPEC leaders to forcefully increase

production looks very far-sighted today and, from the market's

point of view, justified, taking into account the interests of

consumers in light of the uncertainty regarding the scale of the

Iran-Israel conflict," he added.

OPEC+ crude output represents about 41% of global oil

production. The group's main objective is to regulate the supply

of oil to the global market.

Having spent years curbing production, eight OPEC+ countries

made a modest output increase in April before tripling it for

May, June and now July.

Besides the 2.2 million bpd cut that the eight members

started to unwind in April, OPEC+ has two other layers of cuts

that are expected to remain in place until the end of 2026.

Oil prices had initially fallen in response to the OPEC+

decision to increase oil production, but the outbreak of an

aerial war between Israel and Iran has so far been the main

factor behind their return to around $75 per barrel, levels

unseen since the start of the year.

Speaking at the St. Petersburg International Economic Forum,

Sechin, a long-standing ally of Russian President Vladimir

Putin, also said there will be no oil glut long-term despite the

production rise due to low stockpile levels, though rising usage

of electric vehicles in China might hit oil demand.

Putin said on Friday he shared OPEC's assessment that demand

for oil will remain high. He also said that oil prices had not

risen significantly due to the conflict between Iran and Israel,

and that there was no need for OPEC+ to intervene in oil

markets.

Sechin also said Rosneft had already budgeted the oil price

of $45 per barrel for this year, the level the European Union

eyes as the new price cap on Russian oil imports, which is now

set at $60.

($1 = 0.8679 euros)