Senior officials from the Organization of the Petroleum Exporting Countries (OPEC) met with Russia’s energy minister in Riyadh to discuss details around how the group will meet the supply target it set at in Algiers during September, and whether Russia will likewise lower its oil output, Financial Post reported.
Russian Energy Minister, Alexander Novak, and his his Qatari counterpart ,Mohammed al-dada, along with OPEC’s Secretary General, Mohammed Barkindo, discussed possible joint action to stabilise the oil market. Novak said that an oil output freeze is “an effective tool Russia is ready for (in a move) to balance the market”. Yet he said that Moscow was considering “different options,” but declined to provide details, according to Reuters.
In September OPEC members tentatively agreed to collectively cut production to between 32.5mb/d and 33mb/d, down from its August average of 33.75mb/d. Russia is the world’s largest oil producer but not a member of OPEC and its budget has been hit by low oil prices. However, the country is ramping up its oil output amid weak oil prices, as weak rouble and investments made in previous years are helping its oil sector. In September, Russian oil output hit another post-Soviet high of 11.1mb/d. Furthermore, Russia plans to bring another oilfield on stream in October, Lukoil’s Pyakyakhinskoye in the Yamal Arctic region, in addition to Messoyakha launched by Gazprom Neft and Rosneft that were linked to production during September.