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Russia seeks oil market data before backing output cut extension

Reuters - Russia wants to see more analysis of the global oil market and will wait for OPEC's meeting next month before deciding whether to back an extension to an oil supply reduction deal, Russian Energy Minister Alexander Novak said on Tuesday.

The Organization of the Petroleum Exporting Countries, along with Russia and other non-OPEC producers, pledged to cut output by 1.8 million barrels per day (bpd) in the first half of 2017.

With global crude inventories stubbornly high, Gulf and other producers have shown increasing readiness to extend the pact to the end of 2017. Russia has yet to state publicly whether it wants cuts to run beyond June.

After talks in Doha with Qatari Energy Minister Mohammed al-Sada, Novak told reporters Russia would wait until an OPEC meeting in May to decide on any extension.

OPEC and non-OPEC states meet on May 25. Russia has also previously said it would hold talks with OPEC on May 24.

Novak said additional market analysis was underway, based on compliance with the deal and the balance of supply and demand for the rest of the year.

"In order to finally define further actions, we need to study the current situation, to study different scenarios," he said. "We have discussed those issues today and we believe that by a ministries meeting in May we will be ready to formulate our proposals."

OPEC compliance with the supply pact stands at 95 percent, up from an initial February estimate of 94 percent and a record high, according to recent Reuters surveys.

"We are seeing right now a level of compliance with the Vienna agreement reached in December that we are satisfied with," the Qatari minister told reporters after meeting Novak.




Source: www.reuters.com  |  Last Updated: 26-April-2017 at 6:15 AM UTC

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