UPDATE: Russia starts cutting oil output under OPEC deal–minister

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MOSCOW, Jan 12 (PRIME) -- Russia has started cutting its oil production in line with an agreement between OPEC and non-OPEC countries, and the fall exceeded the amount planned by the oil companies in the first 10 days of January, Energy Minister Alexander Novak told reporters on Thursday.

OPEC and 11 non-OPEC countries, including Russia, agreed in December 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.

“Russia is fulfilling its liabilities,” he said. “In general, we can say that we have cut even more than planned by the oil companies in the first 10 days.”

He declined to mention the exact figure of production.

“It is too early to speak about that. We will monitor the situation. Let’s wait for the end of the month,” he said.

The bulk of oil producing countries that signed the agreement sticks to their promise. The countries created a committee, comprising Russia, Oman, Venezuela, Algeria, and Kuwait, to monitor the fulfillment of the agreement. The committee will meet on January 21–22 in Vienna, to evaluate the fulfillment of the agreement, he said.

Moscow also thinks that oil production, not only exports of the countries should be monitored by the committee, but any possible suggestions will be discussed at the meeting, he said.

Previously, Kuwait’s Oil Minister Essam Abdulmohsen Al Marzooq suggested to OPEC Secretary General Mohammed Sanusi Barkindo that the committee should also monitor oil exports of countries that signed the agreement. Novak said that Moscow has not received this proposl, but it may be discussed at the meeting.

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