OPEC, Russia: Production-Cut Agreement Working

OPEC, Russia: Production-Cut Agreement Working

After meeting last Friday in Vienna, ministers from OPEC and major, non-OPEC oil-producing countries, said their production-cut agreement had drawn down global oil stocks, Bloomberg reports.

“The process is working fine so far,” the Kuwaiti Minister of Oil, Essam El Marzouq, said, adding that the ministers hoped that they could “consume the remaining overhang” in global supply before the expiration of the production-cut agreement in March 2018, according to Bloomberg.

The Russian Minister of Energy, Alexander Novak, indicated that the group might discuss whether to extend the production-cut agreement in January, according to Reuters.

“I think we can return to this issue not earlier than January next year,” Novak said.

In January 2017, OPEC and several other major oil producers, such as Russia, implemented a production-cut agreement to reduce production by 1.8 million barrels per day (b/d). The agreement was later extended to March 2018.

Several signatories of the agreement, such as Saudi Arabia and the UAE, have indicated interest in extending the cuts past March..

Last month, El Marzouq indicated that OPEC would discuss its production strategy during its November meeting.

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