After talks in Beijing, Russia and Saudi Arabia agreed on a common position on the need to extend an additional nine months to limit the level of oil exporting countries. The decision has to be made in Vienna on may 25
Russia and Saudi Arabia came to the conclusion about the need to extend the freeze of the level of oil production until March 2018. This was on the basis of negotiations in Beijing, said Minister of energy Alexander Novak and oil Minister of the Kingdom Khaled al-Faleh, reports TASS.
The representatives of the two countries reflected in the final statement after the meeting on the forum of “One belt and one road” held in China. It is noted that the extension of the restriction mode of production is necessary “to achieve main target of efforts to stabilize the market.” It requires “bringing in the volume of global oil reserves to the average over the last five years of values”, the statement said.
In addition, the Ministers noted that the reduction of oil reserves in recent months was accelerated. “Reduction of oil stored in floating storage (tankers) amounted to more than a third since the beginning of the year”, — said the representatives of Russia and Saudi Arabia.
Alexander Novak noted that the position of the energy on the extension of the limitations shared by all Russian companies. “Before discussing this with my counterpart from Saudi Arabia, we have previously discussed our position with our companies. This is our common, consolidated position”, — stressed the Minister. In addition, he added that the talks in Vienna, which will discuss the issue of extending the freeze in production levels, will have more countries than participated in the original agreement.
Khaled al-Faleh said that the discussion of the extension of the restrictions is to keep the quota of 1.8 million barrels per day. “I think that decision will be positive in Vienna. Achieved full agreement of the band,” he said.
Prior to this, on 10 may, the Ministers of oil of Iraq and Algeria announced its readiness to extend the freeze mode of production levels. The question of the extension of the restrictions will be the main theme at the summit of OPEC in Vienna on may 25. In addition, on may 13, Novak said that Russia will maintain the volume reduction of oil production by 300 thousand barrels per day in may and June.