OPEC+ may consider lowering quotas to cut oil production in June

  20 April 2018    Read: 1042
OPEC+ may consider lowering quotas to cut oil production in June

OPEC+ may consider lowering quotas to reduce oil production in June, it all depends on market analysis, TASS citing Russian Energy Minister Alexander Novak reported.

"We will see for two months how the situation develops, and in June, when we meet (on June 22 in Vienna), we will evaluate it. The agreement is in force until the end of the year, and in June we can consider the issue of reducing the quotas during this time. There are currently no solutions," he said.

The Minister added that he expects that surplus of oil reserves will disappear from the market in the coming months, he told reporters on Friday.

"In the coming months," he said, answering a question.

"We are definitely going to extend the cooperation between the OPEC and non-OPEC countries, and the format - a deal or a different format, we will discuss at the June meeting," Novak said. "We are determined to continue cooperation, this could be monitoring the situation in the format of meetings twice a year," he added.

At the same time, surplus of oil reserves decreased to 12 mln barrels, Novak told reporters. "At the end of March the surplus amounted to 12 mln barrels," he said. "In three months, the decline was almost 90 mln barrels, which is a very good indicator," the minister added.

OPEC+ executed the terms of the deal to reduce oil production by 149% in March 2018, Russian Energy Minister Alexander Novak told reporters.

"149% on March," he said, specifying the data previously voiced by Energy Minister of Saudi Arabia Khalid al-Faleh, who also named the figure of 145%.

It was reported earlier that in February this figure was 138%.

As for Russia, it is going to reach a 100% implementation of the OPEC+ deal quota in April. "Now we are close to 100%, I think in April we will reach 100%," Novak said.

OPEC+ countries agreed to reduce production from the beginning of 2017 by 1.8 mln barrels of oil per day against the level of October 2016. Over the past seven months, the plan has been overfulfilled, including through reducing production in Venezuela and several countries in Africa.

The agreement on the reduction of oil production between 24 countries has been in effect since January 2017 and has already been extended twice. According to the terms, the participants should reduce production by 1.8 mln barrels per day (against October 2016, taken as the base level). Currently the agreement is valid until the end of 2018.

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