The planned increase of crude production by OPEC+ nations of 1.5 barrels per day may only cover Q3 2018, Russia’s Energy Minister Alexander Novak said Saturday, APA reports citing TASS.
"First, the issue is about raising (production) only for the third quarter, and in September (we will - TASS) monitor the market situation and (decide) so what should be done accordingly," he said, adding that Q3 is expected to see growth of oil demand, "which is why such proposals (on production growth) are reasonable."
"We should provide all with equal possibilities. I think it will be fair to distribute volumes in proportion to reduction quotas," the minister explained.
According to Novak, what is being considered is production increase of 1.5 mln barrels per day starting July 1, not reduction of the current quota from 1.8 mln barrels to 1.5 mln barrels as some media outlets reported last week.
"We meant an increase of 1.5 mln barrels per year," he emphasized.
At the end of 2016, OPEC and 11 independent oil-exporting countries, including Russia, entered into an agreement to reduce oil production. According to the agreement, during the first half of 2017, the participants had to withdraw 1.8 mln barrels per day from the oil market against the level of October 2016. Russia pledged to reduce oil production by 300,000 barrels per day. At the meeting in Vienna in May 2017, the countries extended the agreement until April 2018, retaining the previous quotas for all participants. The purpose of the agreement is to reduce global oil reserves to five-year average levels.
On June 22-23, OPEC + participants will meet in Vienna to discuss options for further implementation of the transaction, including mitigation of the existing restrictions, as well as institutionalization and termless extension of the deal between OPEC and non-OPEC states.
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