Russian min says OPEC oil cut deal stabilizes market

STAVROPOL, Sep 28 (PRIME) -- An oil production cut agreement between OPEC and non-OPEC states had a stabilizing effect on the market, while a decision on its extension should be made closer to the end of the agreement in March 2018, Economic Development Minister Maxim Oreshkin told reporters on Thursday.

“This deal has stabilized the oil market, which is very important. The issue of prolongation – it will be decided. As it was announced earlier, once this date (of expiration) approaches, the countries will communicate with each other, and Azerbaijan takes active participation in it,” Oreshkin said.

“The deal definitely had a positive impact, its further fate will depend on the market analysis closer to the corresponding date – March 2018,” he added.

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 and was prolonged for nine more months in May.

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