UPDATE: Saudi min: OPEC to demand Russia cut oil output from record levels

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VIENNA, Nov 30 (PRIME) – Keeping oil output at levels suggested by Moscow does not correspond with the OPEC reduction plans aimed at improving the market situation and OPEC will insist that Russia curtail it if such an agreement is made between the cartel participants, Khalid Al-Falih, Saudi oil minister, told reporters on Wednesday.

“Russia has reached an all-time high production level. I think that a freeze at the highest level is not what suits what OPEC does. Our discussions with Russia were devoted to output reduction by non-OPEC states and I left them with this proposal,” Al-Falih said. “But we should not insist on any proposal for them before we come to an agreement (between OPEC states).”

OPEC agreed to limit daily output at 32.5–33.0 million barrels at an informal meeting in Algeria in September. The ceilings for each country are supposed to be defined at a meeting in Vienna later on Wednesday. President Vladimir Putin said earlier that Russia is ready to join OPEC in a freeze of oil production if an agreement is reached.

Reuters reported that OPEC states are discussing an oil output reduction by 1.4 million barrels daily and expect non-OPEC states to cut production by a total of 600,000 barrels a day, including 400,000 barrels that Russia must reduce.

A spokesman for the Energy Ministry said that Russia will announce its position after an OPEC resolution.

Al-Falih said that Libya, Nigeria and Iran are in an extraordinary condition. He said that an output freeze at a level before the Iranian sanctions is acceptable.

He said he is optimistic regarding the possibility to reach a consensus on the measures within OPEC. “We are getting closer,” he said, speaking of the countries’ positions.

Venezuela’s Oil Minister Eulogio del Pino said that the agreement will remove about 1.8–2 million barrels of oil daily from the market.

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