Gazprom Sees OPEC-Led Deal Ending in H1 2019

Gazprom Sees OPEC-Led Deal Ending in H1 2019

Gazprom Neft, a subsidiary of the Russian giant Gazprom, expects the oil output cuts that are led by the Organization of Petroleum Exporting Countries (OPEC) and its allies to end in H1 2019, Reuters reported.

Nevertheless, Vadim Yakovlev, the Deputy CEO of Gazprom’s oil arm, sees that the global oil alliance has to remain intact, even in the form of coordination between the world’s top oil producers.

“In our current forecasts, we assume the deal will be effective until the middle of the year. In that case, our oil production will be higher by around 1.5% from last year,” Yakovlev told reporters.

Russia is yet to take a final decision on extending the current supply deal, according to Russian Energy Minister, Alexander Novak.

On the other hand, UAE’s Energy Minister Suhail Al-Mazroui previously said that Russia cannot increase oil output unless the country coordinates with other major producers.

An OPEC summit was scheduled to take place on April 17, however, it was announced in March that the Vienna meeting will be delayed to June, in order to allow for more time to decide on the future of the deal.

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