Minister: Russia to decide on OPEC deal prolongation in May

MOSCOW, Mar 13 (PRIME) -- Russia will decide whether to prolong an oil output reduction agreement with OPEC in May, Energy Minister Alexander Novak told reporters on March 10.

“We will decide in the month of May, it is too early to say now. We must see what will happen on the market in the three months to come,” Novak said.

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.

Novak said that Russia has reduced its production by 156,000 barrels a day by now and will continue to deepen the production cut.

The minister confirmed plans to cut the output by 200,000 barrels daily in March and 300,000 barrels daily by the end of April.

It is technologically difficult for Russia to reduce the oil production, which is why each company is adjusting its plans independently, he said.

End