UPDATE: Min: Russia cuts oil production by 117,000 bpd in Jan

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NOVO-OGARYOVO, Moscow Region, Feb 1 (PRIME) -- Russia reduced oil output by 117,000 barrels a day in January, Energy Minister Alexander Novak said during a meeting with President Vladimir Putin on Wednesday.

“All countries had a serious approach to the intent to fulfill this agreement (on oil production cut between OPEC and non-OPEC states). The majority of countries have started to fulfill the agreement. According to preliminary data, we see that the (combined) output reduction amounted to about 1.4 million barrels daily in January,” Novak said.

“Some countries reduced more than planned, are going ahead of the schedule. Russia’s output decreased by 117,000 barrels daily as of the end of January, which is twice as much as the initial plans of the companies,” the minister said.

The minister added that the production cut has resulted in an oil price growth by U.S. $10–15, and the current price is close to the fair one.

Novak also said that Russian oil companies are cutting their output voluntarily. “Our companies are fulfilling the agreement, this is of a voluntary nature because it is really profitable both for companies, and for the budget as a whole.”

OPEC and 11 non-OPEC countries, including Russia, agreed on December 11, 2016 to cut combined oil production by 1.8 million barrels a day in January–July 2017 in order to balance supply and demand. OPEC will reduce output by 1.2 million barrels daily, while Russia is to decrease production by 300,000 barrels.

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