Russia, Saudi Arabia mull extending OPEC/non-OPEC deal

Russia, Saudi Arabia mull extending OPEC/non-OPEC deal
A file photo of Russian Energy Minister Alexander Novak.
Published: 6 September 2017 - 2:25 a.m.
By: Indrajit Sen

Russia and Saudi Arabia have discussed extending the oil output cut deal between OPEC and non-OPEC producers, although no specific decisions have been made, Reuters has reported citing the TASS news agency which quoted Russian Energy Minister Alexander Novak as saying.

The Organization of the Petroleum Exporting Countries and a Russia-led group of 11 other producers outside the cartel, have agreed to reduce oil production until the end of March 2018. A committee of OPEC and non-OPEC countries has already recommended extending the curbs further if needed.

"We met in St Petersburg and discussed such an option (with Saudi Arabia) - that it is possible within the framework of the signed agreements," TASS quoted Novak as saying.

"We are considering all kinds of options. We may consider the issue of extending (the OPEC-led deal) if need be."

The Interfax news agency quoted Novak as saying it was premature to talk about the possible extension to the deal.

OPEC and other leading oil producers, with Russia at the forefront, agreed at the end of last year to cut their combined oil production by almost 1.8mn barrels per day (bpd) to help rebalance the market amid weaker oil prices.

Russia has agreed to reduce its output by 300,000 bpd from the October level of 11.247mn bpd.

Russian oil output fell to a year-low of 10.91mn bpd in August from 10.95mn bpd in July, data from its Energy Ministry has revealed.

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