UPDATE: Novak says OPEC deal terms may change in case of extension

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VLADIVOSTOK, Sep 6 (PRIME) -- Terms of the oil production cut agreement between OPEC and non-OPEC states could be changed in case of its prolongation after March 2018, Russian Energy Minister Alexander Novak told reporters Wednesday on the sidelines of the Eastern Economic Forum.

“Everything is possible. Perhaps, if we need to change the terms, we will discuss such issues,” he said.

OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels in November 2016. Russia joined the agreement in December with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was concluded for January–June and was prolonged for nine more months in May.

A decision to prolong the deal could be made if a targeted reduction of oil reserves was not achieved, but it is early yet to discuss the extension, Novak said.

“If we see that the market needs additional efforts for balancing, if it is not balanced in terms of bringing reserves to an average 5-year figure. There could be other factors,” he said.

“But it is early to speak about it yet, March is still far away, we have to look how the market situation develops,” Novak said.

He said he expected that the oil market will be balanced by April 1, 2018.

The minister also said separately he expected that the oil price will be in the range of U.S. $45–55 per barrel in 2018.

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