Minister: OPEC to make proposal on oil cut deal prolongation May

DOHA, Apr 25 (PRIME) -- OPEC has not yet finished analyzing the situation on the oil market and will prepare its proposal on expansion of the oil reduction agreement in May, Russia’s Energy Minister Alexander Novak said on Tuesday.

“We have agreed (at a ministerial meeting in Kuwait in March) that OPEC’s Secretariat will analyze the current oil market situation… it is still underway. We need to examine the situation and different scenarios to make a final decision. Today we have discussed these issues and will be ready to present out proposals at a ministerial meeting in May,” he said after a meeting with the minister of energy of Qatar.

OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels in November 2016. Russia joined the agreement in December with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June 2017 with potential prolongation.

Secretary General of OPEC Mohammed Barkindo said earlier in April that the decision on the future of oil cut agreement will be taken in Vienna on May 25.

End