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News // Middle East and OPEC

Energy Minister Novak: Russia has reduced oil production by 100,000 bpd

23 January 2017 , 10:37Neftegaz.RU521

A. Novak said on Januar 22, 2017, that Russia has lowered its oil output in the wake of a landmark deal struck in November by the OPEC to spur prices through reduced production.

 

Russia is not a member of OPEC but has agreed in the framework of a December deal with the organization to reduce its output by a maximum of 300,000 barrels per day (bpd).

On December 10, OPEC also struck an agreement with countries outside the group, most notably Russia, for them to reduce production by 558,000 bpd.

 

Energy Minister Alexander Novak said on that Russian companies were working ahead of schedule in this regard.

«We have reduced (production) by an average of 100,000 barrels per day,» Novak stated.

 

The Russian minister made the remarks ahead of a key trip to the Austrian capital, Vienna, where he is set to attend the compliance committee meeting in the OPEC headquarters.

Under the deal reached in Vienna last year, some key OPEC members, including Saudi Arabia, agreed to cut their production to help boost oil prices in the global market.

 

The scheme worked and oil prices reached above $50 per barrel to mark a 20% increase.

However, analysts have been wary of a return to depressed prices in case major oil producers refuse to implement the agreements.

 

Higher prices could also encourage non-OPEC members such as the United States to increase their shale production, which could lead to lowered prices.

«We are doing all we can to participate in the implementation of the agreement,» said Novak.

 

Russia is the 2nd major oil producer and exporter in the world after Saudi Arabia.

A Russian government spokesman said Novak would also hold a meeting with Saudi Energy Minister Khaled al-Falih during the visit to Vienna.

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