Saudi Arabia and Russia will discuss allowing oil production to increase by around 1 million barrels per day (b/d) in an effort to ease concerns over a supply shortage and high oil prices, Reuters reported.
The strict cuts currently in place – alongside the low production levels from Venezuela and the US decision to abandon the 2015 nuclear deal with Iran and reinstate sanctions on the Persian country – have lead to soaring oil prices, reaching $80 a barrel on May 17. The last time the $80 mark was breached was November 2014.
The energy ministers of Saudi Arabia and Russia, as well as their counterpart from the United Arab Emirates (UAE), will lead the preliminary talks in St. Petersburg in the coming week.
The agreement, signed by OPEC and non-OPEC countries, stipulated output cuts of roughly 1.8 mb/d through 2018 to reduce global stocks. Russian Energy Minister Alexander Novak said however that cuts were closer to 2.7 mb/d due to the sharp fall in Venezuelan production.
“The moment is coming when we should consider assessing ways to exit the deal very seriously and gradually ease quotas on output cuts,” Novak said.