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Russia has begun to admit that it must participate in a further reduction in oil production driven by Saudi Arabia, but it is still negotiating with its key OPEC partner on how much, how much of time and how long it could potentially reduce its oil production, Reuters reported. Thursday, citing two sources from the industry.
For nearly a month – since a panel of OPEC / non-OPEC has indicated that it might be necessary to cut oil production by one million barrels per day to balance the market – Russia has warned against any hasty decision regarding further cuts in production and has not officially declared that a cut is needed.
While Saudi Arabia and its energy minister, Khalid al-Falih, talk about the idea of a further reduction in production, Russia is less convinced of being able to participate in a further reduction, or at least let Does she believe in the market?
However, Moscow has repeatedly said that its cooperation with OPEC should and will continue.
Just yesterday, Russian President Vladimir Putin said that Russia was comfortable with the current level of oil prices around 60 dollars a barrel.
Putin is scheduled to meet the prince at the G-20 summit in Buenos Aires later this week.
Russian Minister of Energy discusses with local producers the possibility of a reduction in his oil production and will continue discussions with a view to reaching a position at the OPEC / non-OPEC meeting scheduled for early December Energy Minister Alexander Novak said last week. Another meeting with the Russian oil companies took place on Tuesday.
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"The idea at the meeting was that Russia had to reduce. The key question is how long and how fast, "Reuters told Reuters on Thursday a familiar source of talks between the Russian energy ministry and local oil companies.
Most people have agreed that Russia can not immediately cut back on production and that if it joins the cuts, it will gradually reduce production, as it did the previous time, the source told Reuters.
A break is needed, but Russia does not want to participate with a big break, said a second source to Reuters.
Analysts believe that Russia agreeing to cut production would be crucial for OPEC / the non-OPEC group to reach a deal. Saudi Arabia al-Falih has already stated that, even though the Saudis will do all that is necessary to stabilize the oil market, they can not and will not do it alone without a collective decision by OPEC and participants in the agreement.
By Tsvetana Paraskova for Oilprice.com
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