Min says Russia’s February oil output to be lower than in January

SOCHI, Feb 27 (PRIME) – Russia will produce less oil in February than in January when the country reduced output by 117,000 barrels a day, Energy Minister Alexander Novak told repoters on Monday.

OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels in November. Russia joined the agreement in December with a promise to cut output by 300,000 barrels daily. The agreement was concluded for January–June 2017 with potential prolongation.

“It is too early to speak about February, but (the production cut) will amount to more than the 117,000 (barrels a day in January)… Production in February will be lower than in January, and the decrease of production will be deeper,” he said.

He said the cut was done as oil companies fulfilled their investment plans.

The combined percentage of cuts by OPEC and non-OPEC countries stood at 86% of the target level in January. “I am sure that we will fulfill the obligations that we’ve undertaken,” he said.

But prolongation of the agreement does not depend on oil prices as the agreement was meant not to reach a certain price, but to balance supply and demand at the world oil market, he said.

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