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Russia says to discuss extending oil cut with OPEC on May 24

Reuters  |  TOKYO 

By Osamu Tsukimori

TOKYO (Reuters) - Russian Energy Minister Alexander Novak said on Friday a decision on extending a global pact to cut production had not yet been taken, but would be discussed with on May 24.

The Organization of the Petroleum Exporting Countries and other leading producers have pledged to curb output by 1.8 million barrels per day (bpd), with Russia's contribution of cuts amounting to 300,000 bpd to be gradually phased in.

The goal was to reduce bulging global inventories and lift prices. Despite a modest recovery in the market, stocks remain high and the focus is now on whether and non-producers will prolong the cuts into the second half of 2017.

OPEC's next policy-setting meeting is set for May 25, with a decision expected at that time on whether to extend the curbs.

Novak said information on the market's situation and forecasts were being digested in order to draw a conclusion.

"The Secretariat will send the information to all the countries that are taking part in the agreement and we will discuss the issue during a ministerial meeting on May 24," said Novak.

He was believed to be referring to a joint committee of ministers from and non-producers that monitors compliance with the accord.

"There are no firm decisions on that. Each country is looking into the matter by itself so it can make its proposals and evaluations," said Novak, who was on a visit to Tokyo.

He also said Russia's output cuts had reached 250,000 barrels per day (bpd) and would hit a targeted 300,000 bpd by the end of April.

MARKET IMPROVES

Earlier on Friday, Novak said the market was improving with production cuts by and non-members, including Russia, trimming a surplus that had squeezed prices for years.

"The situation has gradually been improving since the beginning of March," Novak said. "The surplus has been reduced. The situation is getting more and more stable and there's less volatility on the market."

Novak said current prices reflected the market situation, with benchmark Brent around $53 a barrel.

Leading Gulf exporters Saudi Arabia and Kuwait signalled on Thursday that is seriously considering an output-cut extension. Saudi Energy Minister Khalid al-Falih said a consensus was growing that the pact should be prolonged.

sources said an internal assessment was that without an extension, could slide to $30-40 a barrel.

(Reporting by Osamu Tsukimori; writing by Vladimir Soldatkin; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Russia says to discuss extending oil cut with OPEC on May 24

TOKYO (Reuters) - Russian Energy Minister Alexander Novak said on Friday a decision on extending a global pact to cut oil production had not yet been taken, but would be discussed with OPEC on May 24.

By Osamu Tsukimori

TOKYO (Reuters) - Russian Energy Minister Alexander Novak said on Friday a decision on extending a global pact to cut production had not yet been taken, but would be discussed with on May 24.

The Organization of the Petroleum Exporting Countries and other leading producers have pledged to curb output by 1.8 million barrels per day (bpd), with Russia's contribution of cuts amounting to 300,000 bpd to be gradually phased in.

The goal was to reduce bulging global inventories and lift prices. Despite a modest recovery in the market, stocks remain high and the focus is now on whether and non-producers will prolong the cuts into the second half of 2017.

OPEC's next policy-setting meeting is set for May 25, with a decision expected at that time on whether to extend the curbs.

Novak said information on the market's situation and forecasts were being digested in order to draw a conclusion.

"The Secretariat will send the information to all the countries that are taking part in the agreement and we will discuss the issue during a ministerial meeting on May 24," said Novak.

He was believed to be referring to a joint committee of ministers from and non-producers that monitors compliance with the accord.

"There are no firm decisions on that. Each country is looking into the matter by itself so it can make its proposals and evaluations," said Novak, who was on a visit to Tokyo.

He also said Russia's output cuts had reached 250,000 barrels per day (bpd) and would hit a targeted 300,000 bpd by the end of April.

MARKET IMPROVES

Earlier on Friday, Novak said the market was improving with production cuts by and non-members, including Russia, trimming a surplus that had squeezed prices for years.

"The situation has gradually been improving since the beginning of March," Novak said. "The surplus has been reduced. The situation is getting more and more stable and there's less volatility on the market."

Novak said current prices reflected the market situation, with benchmark Brent around $53 a barrel.

Leading Gulf exporters Saudi Arabia and Kuwait signalled on Thursday that is seriously considering an output-cut extension. Saudi Energy Minister Khalid al-Falih said a consensus was growing that the pact should be prolonged.

sources said an internal assessment was that without an extension, could slide to $30-40 a barrel.

(Reporting by Osamu Tsukimori; writing by Vladimir Soldatkin; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

Russia says to discuss extending oil cut with OPEC on May 24

By Osamu Tsukimori

TOKYO (Reuters) - Russian Energy Minister Alexander Novak said on Friday a decision on extending a global pact to cut production had not yet been taken, but would be discussed with on May 24.

The Organization of the Petroleum Exporting Countries and other leading producers have pledged to curb output by 1.8 million barrels per day (bpd), with Russia's contribution of cuts amounting to 300,000 bpd to be gradually phased in.

The goal was to reduce bulging global inventories and lift prices. Despite a modest recovery in the market, stocks remain high and the focus is now on whether and non-producers will prolong the cuts into the second half of 2017.

OPEC's next policy-setting meeting is set for May 25, with a decision expected at that time on whether to extend the curbs.

Novak said information on the market's situation and forecasts were being digested in order to draw a conclusion.

"The Secretariat will send the information to all the countries that are taking part in the agreement and we will discuss the issue during a ministerial meeting on May 24," said Novak.

He was believed to be referring to a joint committee of ministers from and non-producers that monitors compliance with the accord.

"There are no firm decisions on that. Each country is looking into the matter by itself so it can make its proposals and evaluations," said Novak, who was on a visit to Tokyo.

He also said Russia's output cuts had reached 250,000 barrels per day (bpd) and would hit a targeted 300,000 bpd by the end of April.

MARKET IMPROVES

Earlier on Friday, Novak said the market was improving with production cuts by and non-members, including Russia, trimming a surplus that had squeezed prices for years.

"The situation has gradually been improving since the beginning of March," Novak said. "The surplus has been reduced. The situation is getting more and more stable and there's less volatility on the market."

Novak said current prices reflected the market situation, with benchmark Brent around $53 a barrel.

Leading Gulf exporters Saudi Arabia and Kuwait signalled on Thursday that is seriously considering an output-cut extension. Saudi Energy Minister Khalid al-Falih said a consensus was growing that the pact should be prolonged.

sources said an internal assessment was that without an extension, could slide to $30-40 a barrel.

(Reporting by Osamu Tsukimori; writing by Vladimir Soldatkin; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22