UPDATE: Minister says Russia cuts oil output by 120,000 bpd June

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MOSCOW, Jul 13 (PRIME) -- Russia reduced oil production by 120,000 barrels per day from the level of October 2016 in June in the framework of an OPEC plus nonmember oil output reduction agreement, Energy Minister Alexander Novak told reporters on Friday.

“In June, by about 120,000 barrels,” 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 compared with the earlier quota.

According to Novak, the OPEC plus deal has virtually achieved its goal, and the current situation is fine from the point of view of price and investment. The deal participants are now discussing signing a perpetual cooperation agreement from 2019.

“We are now considering a draft agreement to institutionalize relations between OPEC and non-OPEC states starting from 2019, on constant cooperation in this area,” Novak said.

The Russian budget will receive 2.5–3 trillion rubles from the agreement in 2018, he said.

Novak separately said that Russia has not suspended its oil-for-goods exchange program with Iran and is studying all legal aspects.

According to earlier statements by Russian officials, Russia supplies grain, equipment and construction materials to Iran in exchange for oil under a deal, whose conditions were signed in August 2014.

(62.2062 rubles – U.S. $1)

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