Russian Energy Minister: Russia sets to agree on oil production cuts

07.12.2018,16:36


December 7, Fineko/abc.az. The OPEC+ ministers are discussing the possibility of oil production cuts in 2019 to avoid oversupply of crude.

Russian Energy Minister Alexander Novak, who arrived at the OPEC Secretariat for a meeting of petroleum exporting countries’ minister, told reporters that Russia is inclined to agree on reduction of oil production.

"We will negotiate on the occasion," he said, answering the question if Russia is ready to discuss production cuts.

According to Reuters, Russia may agree to reduce oil production by 200,000 bpd.

The OPEC+ ministers at the Vienna meeting on 5-7 December are discussing the possibility of production cuts in 2019 to avoid oversupply of crude due to growth of production in the U.S. and lifting of sanctions against Iran.

The OPEC meeting, which lasted for six hours on 6 December, ended without specific agreements, although the main scenario remains the reduction of 1 million bpd for all the OPEC+ participants. October 2018 is preliminarily called the basic month for production cuts.

The stumbling block on 6 December was definition of individual quotas for the OPEC countries, as well as the question of exceptions for such countries as Iran, Venezuela (both under sanctions), as well as Libya and Nigeria (both had the opportunity not to reduce in 2017), the OPEC meeting participants told TASS.

The press reporting about the Vienna meetings of petroleum ministers pays the main attention to the position of Russia, representing in talks by Novak.

The cooperation agreement, known as the OPEC+ platform, expires this year. On 7 December, the ministers are to sign a new termless Charter to consolidate cooperation from 1 January 2019.