OPEC Chair says several states mull joining oil output cut deal

DAVOS, Switzerland, Jan 19 (PRIME) -- Several countries are considering joining an earlier agreement between OPEC and non-OPEC oil producers to cut oil output, OPEC Chairman Mohammed Barkindo told PRIME in an interview published on Thursday.

“I have talked here, in Davos, with some of those who were astounded by the results, inspired by the preliminary influence of the decision and are thinking about joining it. I have an optimistic approach: now we have 24 states, we can have more,” Barkindo said without naming the countries which are considering following the production cut terms.

“I am still convinced and very optimistic that the level of compliance with the declaration of cooperation of 24 participating countries will be very high,” Barkindo said.

He said that it is too early to say whether the agreement term will be prolonged. “I think that it would be too early (to speak about this) at the moment. The agreement is for six months, starting from January 1. This is why we are right at the beginning.”

Barkindo said he sees no risk of a dramatic oil production growth after the term of the agreement on production reduction expires.

OPEC and 11 non-OPEC countries, including Russia, agreed on December 11, 2016 to cut combined oil production by 1.8 million barrels a day in January–July 2017 in order to balance supply and demand. OPEC will reduce output by 1.2 million barrels daily, while Russia is to decrease production by 300,000 barrels.

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