OPEC, non-OPEC states may prolong oil output deal till end-2018

SANTA CRUZ DE LA SIERRA, Bolivia, Nov 23 (PRIME) -- OPEC and non-OPEC states are discussing different options of prolongation of their output reduction deal, including prolongation until the end of 2018, Venezuelan Oil Minister Eulogio Del Pino told reporters late on Wednesday on the sidelines of the Gas Exporting Countries Forum summit.

“We are discussing this (possibility to prolong the deal at the OPEC+ meeting in Vienna on November 30)…We may make a decision to prolong the deal next week,” he said.

When asked whether the countries were discussing the possibility to prolong the deal until the end of 2018, he said, “This is one of the options we are discussing.”

Venezuela stands for prolongation of the deal. “Excessive reserves still top 100 million barrels. It is blatantly obvious that we will not manage to decrease the level (to a 5-year average figure) in the upcoming season,” he said.

OPEC 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 including Russia agreed to cut their combined output by 558,000 barrels. The agreement was concluded for January–June and prolonged for nine months in May.

Russia, Venezuela and some other participants of the agreement, including Qatar, the United Arab Emirates, and Oman, will discuss prolongation of the deal during the summit, which ends on Friday, he said.

At least six non-OPEC African states will take part in the November 30 meeting in Vienna, including Equatorial Guinea. He also said that Saudi Arabian Energy Minister Khalid al-Falih also invited several South American countries to the meeting, including Bolivia, Trinidad and Tobago, and Colombia, he said.

Qatari Energy and Industry Minister Mohammed Bin Saleh Al Sada said that the agreement is working, and commercial reserves of oil are falling, but the agreement needs more time to stabilize the market, this is why participants of the agreement are discussing the prolongation.

Del Pino also said that he will meet with Russian Energy Minister Alexander Novak during the summit of the Gas Exporting Countries Forum to discuss possibilities for energy cooperation of the two countries.

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