Energy ministry: Russia sees OPEC+ oil output deal efficient

MOSCOW, Jul 7 (PRIME) -- Russia believes that the oil output reduction agreement of OPEC and non-OPEC states is efficient, and a fall in commercial U.S. oil reserves confirm it, an official representative of the Energy Ministry told PRIME on Friday.

On Thursday, the U.S. Energy Department said that commercial oil reserves in the U.S. contracted by 6.2 million barrels to 502.9 million barrels in the week that finished on June 30.

“Russia now believes that the initiative is efficient, as it supports the decrease of commercial reserves of oil in the world and stabilization of oil markets. Yesterday’s U.S. commercial reserves data prove it as it once again showed a significant contraction,” the representative said.

Russia is also ready to study suggestions to change parameters of the deal.

“At the meeting (of the committee that monitors compliance with the agreement) we may study any proposals on further or additional actions from the point of reasonability and necessity if they are submitted. Russia is ready to study suggestions from partners, including suggestions to change some parameters, if necessary,” the person said.

OPEC states agreed to reduce production by 1.2 million barrels daily to 32.5 million barrels in November 2016. In December 2016, 11 non-OPEC countries agreed to cut their combined output by 558,000 barrels, including Russia, which has agreed to slash production by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June 2017 and was prolonged for nine more months in May.

The monitoring committee will meet in St. Petersburg on July 24.

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