Novak: Russia to extend OPEC oil production deal

EPA/VADIM RUSAKOV/FILE PICTURE

Oil-pumping equipment standing abandoned at the oil well site near Surgut in Siberia, Russia.

Reduction of the surplus of commercial reserves on the market is going at a fairly good pace


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Russian Energy Minister Alexander Novak said his country is ready to extend the oil production cut agreement with the Organization of Petroleum Exporting Countries (OPEC), TASS reported, citing the Russian Energy Ministry.

“Now we are holding final negotiations on this topic with our partners and are inclined to think that extension is reasonable,” Novak said, adding that “reduction of the surplus of commercial reserves on the market is going at a fairly good pace, while the reserves in floating storage facilities and tankers have decreased by about half”.

For the full recovery of the market, it is necessary to extend the initiative, Novak said.

Under the agreement with OPEC Russia is to reduce its average daily oil production by 300,000 barrels in the first half of 2017, or by 2.7% in comparison with the level of last October, TASS reported. On May 2, the Russian Energy Ministry said the target had been achieved.

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