JOHANNESBURG, South Africa, Jul 27 (PRIME) -- The OPEC plus nonmember oil output reduction deal participants can discuss a new increase of the quotas in September depending on the market situation, Russian Energy Minister Alexander Novak told reporters on Friday.
“We have decided so far (to raise) by 1 million barrels until the end of the year. On condition that we shall see in September, if production and consumption balance is achieved, taking into account the factors of Libya, of production in other states,” Novak said.
In November 2016, OPEC and non-OPEC states agreed to reduce their oil production to rebalance the market. Russia joined the agreement to cut the output by 300,000 barrels daily as compared with the level of October 2016. In 2017, the deal was prolonged until the end of 2018. In June, the participants decided to raise the output by 1 million barrels of oil per day.
Novak said that Russia will raise production by 200,000–250,000 barrels per day in July in line with the OPEC plus decision.
The minister also thinks that the oil market has already priced in the intent by the U.S. to slap sanctions on Iran in November.
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