Russian min sees oil glut falling 1 mln bpd until end of 2016

ISTANBUL, Oct 10 (PRIME) -- Russian Energy Minister Alexander Novak expects the international oil surplus to fall by about 1 million barrels per day (bpd) until the end of 2016, Novak told reporters Monday.

On September 27, the Organization of the Petroleum Exporting Countries agreed to cut output by between 200,000 and 700,000 barrels a day. The 14-nation oil-producing group controls over a third of the world’s oil production, but said it also wanted non-OPEC producers to join the effort to curb output.

“We will have an about 1 million barrels per day (of oil surplus on the world market) by the end of the year. But we had (a daily surplus) of about 1.8–2 (barrels) at the beginning of the year, so this year it will contract by about 1 million barrels,” he said, adding that situation changes every month.

But Russia has not scheduled a meeting with Saudi Arabia to discuss the oil production agreement. “We will hold consultations with the key countries. So far, I am unaware (about a meeting with Saudi Arabia)…We will meet with the maximum possible number of ministers depending on their schedules, possibilities, and agreements. This largely depends on schedules of ministers. We usually make agreements on the time of meetings on the spot,” he said.

During the bilateral meetings with oil ministers of OPEC countries, Russia plans to define a cooperation mechanism with the cartel members on issues of stabilization of the oil market, he said.

OPEC has yet to agree on how much each of its members may produce. Iran, Libya and Nigeria are exempted from restrictions and are expected to produce more oil. The group is set debate individual allocations as part of a specially-formed committee ahead of a crucial OPEC meeting in Vienna on November 30.

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