Novak called the possible extension of the transaction for the reduction of oil production

Alexander Novak

Photo: Oleg Yakovlev / RBC

At the talks on may 24-25 in Vienna, OPEC will consider the possibility of extending the agreement to reduce oil production to “at least” six months, said energy Minister Alexander Novak

The organization of countries — exporters of oil (OPEC) and not members of the cartel States on may 24-25 in Vienna to discuss the extension of the agreement on the reduction of oil production. This was announced by the head of the Ministry of energy Alexander Novak, reports “RIA Novosti”.

“I think that, most likely, we will consider at least six months, maybe more,” Novak voiced assumptions about the timing of a new agreement to reduce oil production. The Minister noted that in case of signing new agreement, the amount of the reduction is likely to remain at the same level and will be calculated from October 2016.

On the question of the composition of the participants agreement, Novak said that “most likely, we will discuss, so that everyone is included in the agreement, have agreed on the extension.” The Russian forecast of oil production in 2017 will be updated when the OPEC’s decision will be taken, he added.

While Russia intends in may and June to keep the reduction of oil production by 300 thousand barrels per day. “If the decision on the extension of the agreement is likely to make it easier, will not change the settings. But we will discuss it, I can’t say definitively,” said Novak.

Earlier Bloomberg, citing a Russian government official, who wished to remain anonymous, said that Russia considers it appropriate to extend the deal for a voluntary restriction of output by at least six months. The source of the Agency also noted that Moscow is satisfied with the reduction of commercial reserves of raw materials.

Novak may 8 reported that the signatory countries have fulfilled it 100%. Then he said “high discipline among the participants” who voluntarily reduced production to approximately 1.8 million barrels. a day. Novak also mentioned that “extension [of the agreement — RCH] for a longer period will help to expedite the return of markets to a more healthy state”.

Agreement to reduce oil production by OPEC countries was signed in Vienna in late November 2016. Oil exporters agreed to reduce the extraction of raw materials in early 2017 by 1.2 million bbl./day, to 32.5 million barrels. 10 Dec 2016 11 countries outside the cartel countries, including Russia, Kazakhstan, Azerbaijan, Oman and Bahrain, had undertaken from January 2017 in total to reduce the volume of oil production at 558 thousand Barr./day. Moscow has pledged to cut daily production of hydrocarbons by 300 thousand Barr. in the first half of 2017.

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