Russia can cut oil output by 250,000 bpd by mid-April: minister

Russia’s Energy Ministry will soon start consultations with the Russian oil companies on extending the country’s participation in the OPEC deal, Energy Minister

The decision on extending OPEC’s oil output cut deal depends on developments in the oil market in April and forecasts for May and June, TASS quoted Novak as saying at the Federation Council Apr. 11, Trend reports.

The minister said that as a result of participation in the OPEC deal, the share of energy revenues in Russia’s budget increased from 38 percent to 50 percent in the first quarter of 2017.

Russia will be able to reduce the daily oil production by 250,000 barrels by mid-April, added Novak.

Russia agreed to cut its oil output by 300,000 barrels per day under the OPEC deal signed in Vienna.

In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from Jan. 1, 2017 for six months, extendable for another six months.

OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 barrels per day.

News.Az

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