Russian min thinks OPEC may reach oil output freeze consensus Wed

ALGERIA/MOSCOW, Sep 28 (PRIME) -- OPEC countries may reach a consensus on a freeze of oil production on Wednesday, but they have to hold an official meeting to formalize the result, Russian Energy Minister Alexander Novak told reporters late on Tuesday.

Earlier on Tuesday, ministers of OPEC countries said that a formal decision of the organization may be announced at a Vienna meeting on November 30.

“Today we heard statements of ministers that they do not expect any decisions tomorrow (on Wednesday). They may hold consultations tomorrow, exchange opinions, maybe even find a consensus and a common approach. As I see it, OPEC will need to have a formal meeting to formalize any decisions,” Novak said.

The organization may meet even before November to formalize any agreement if it is reached, he added.

Novak also confirmed that he will not take part in an informal meeting of OPEC members on Wednesday as Russia is not a member of the organization, but will participate in a meeting of OPEC with non-members of OPEC if it is suggested, he said.

Iran and Saudi Arabia have become more flexible and aimed at reaching agreements, Novak said. “Yes, there are certain discussions of positions, options, mechanisms and so on. But I saw that the sides have become more constructive in achieving a common position,” he said.

After OPEC defines a common position, Russia will be ready to study joint actions to stabilize the oil market, he said. Moscow will base its decision on its own interests and interests of the market, and will not join any decision of OPEC “blindfolded”, Novak said.

Still, the option of freezing an oil production level is acceptable for Russia, and the production level of September is the most viable option, he said.

An exception from an agreement on a freeze of oil production should be made for Iran, so that the country is able to participate in the agreement after it reaches the pre-sanction level of oil production, he said. Individual approaches should also be defined toward Nigeria and Libya, the oil production of which suffered due to force majeure events this year, he said.

Algerian Energy and Mining Minister Noureddine Bouterfa said that OPEC sees the oil production freeze as one of possible solutions to stabilize the world oil market. Novak said that the decision will help the market to reach the balance between supply and demand three to six months earlier, but the market will find its balance regardless of the decision.

Saudi Arabian Energy Minister Khalid al-Falih told Rossiya 24 television channel in an interview that OPEC may meet with other oil producers in November if the agreement is reached within the organization. “But I think that the market will improve and (oil) prices will rise despite whether we reach this agreement on a freeze (of oil output) or don’t. I hope, we will be able to agree,” he said.

Bloomberg also reported citing al-Falih that the minister plans to meet with Novak in October.

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