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© Reuters. A storage tank of the Russian monopoly of pipelines, Transneft, is photographed in the port of Ust-Luga, in the Baltic Sea
By Dmitry Zhdannikov and Olesya Astakhova
LONDON / MOSCOW (Reuters) – Russia is increasingly convinced of the need to reduce its oil needs Two representatives of the energy sector told Reuters that the results of this study should be published alongside those of OPEC, but that They are still negotiating with the leader of the producer group, Saudi Arabia, about the timing and volume of any cuts.
The Russian Ministry of Energy held a meeting with the heads of domestic producers. Tuesday, in anticipation of a rally in Vienna December 6 and 7 of the Organization of Petroleum Exporting Countries and its allies.
"The idea at the meeting was that Russia had to downsize.The essential question is to know, said a source familiar with the talks between the Russian oil companies and the ministry.
" The most people have agreed that we can not reduce immediately, it must be a gradual process like the last time, "said the source, who asked not to be identified because he is forbidden to talk to the media. [19659004] Russian oil companies Rosneft (MM 🙂 and Gazprom Neft (MM 🙂 declined to comment Lukoil (MM :), Tatneft (MM :), Surgutneftegas, Gazprom (MM 🙂 and Novatek (MM 🙂
OPEC and its allies, led by Russia, restricted their production under a pact concluded in late 2016 to drive up oil prices.
Moscow agreed to cut production by 300,000 barrels per day, one-sixth of the total reduction of 1.8 million bpd, but Russian companies took several months to reach this level of reduction.
Now, Riyadh has suggested to OPEC and its Allies reduce their production of one million barrels per day from January 2019 to end a price drop, Brent crude ( ) falling below $ 59 a barrel this week, falling to $ 85 in October due to concerns over a possible overabundance.
proportion of these reductions, as was the case in the existing agreement, its share of reduction would be 166,000 barrels a day.
"It was also said that reducing a sixth this time was a big demand," said the source. [19659004] A second source informed during the discussions said: "We must reduce but we would not want to reduce it too much."
OPEC and its allies will meet in the face of concerns over the slowdown in the global economy and rising oil availability in the United States. who is not involved in the existing pact. [19659004] Saudi Arabia is under new pressure from US President Donald Trump, who has asked the kingdom to refrain from any reduction in production and to contribute to lower oil prices.
The crisis surrounding the murder could possibly complicate the decision. journalist Jamal Khashoggi at the consulate of Saudi Arabia in Istanbul last month. Trump has supported Saudi Crown Prince Mohammed bin Salman despite calls by many US politicians to impose stiff sanctions on Riyadh
Russian President Vladimir Putin will meet with Prince Mohammed in Argentina at the G20 summit this weekend , to which Trump must also attend.
Up to now, Moscow has not committed to reducing its production.
On Wednesday, Putin said that Russia was in contact with OPEC but that Moscow would be satisfied with an oil price of 60 dollars a barrel. Putin had previously said that Russia would be satisfied with oil at $ 70.
"We are in contact with OPEC and we are ready to continue our joint efforts if necessary," Putin said.
Saudi Minister of Energy, Khalid al-Falih, said on Wednesday, the kingdom would not reduce oil production alone.
"We generally have reservations about the likelihood of a 2016 type cooperation this year, although Russia's position is undoubtedly crucial," said the JBC Energy think tank. in a note.
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