Russia cuts oil output by 100,000 bpd: ministry

OPEC cartel agreed to reduce production to boost prices in November last year

Afp January 21, 2017

MOSCOW: Russia has cut its oil production by some 100,000 barrels a day, Energy Minister Alexander Novak said Saturday ahead of a key meeting in Vienna.

Under a landmark deal in November last year, the Organization of Petroleum Exporting Countries (OPEC) oil cartel agreed to reduce production in order to boost prices.

Non-OPEC countries - notably Russia, but not the United States - followed suit and agreed in December to make cuts.

Both deals boosted oil prices by around 20% to above $50 per barrel, but gains have been capped by unease about implementation and rising US shale production thanks to the higher prices.

A committee to monitor compliance with the deals is scheduled to meet in Vienna later Saturday.

Russia has previously pledged to cut its daily production by 300,000 barrels in the first half of 2017.

“We have reduced (production) by an average of 100,000 barrels per day (bdp),” Novak said, in remarks carried by RIA Novosti news agency.

Russian oil companies are working “ahead of schedule” to make the agreed cuts, said Novak, who is set to attend the compliance committee meeting.

He will also meet Saudi Energy Minister Khaled al-Falih, a government spokesman said, according to Ria Novosti.

“We are doing all we can to participate in the implementation of the agreement” reached with the OPEC and non-cartel members, Novak added.

Published in The Express Tribune, January 22nd, 2017.

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