The global pact aimed at the reducing bloated oil inventories and supporting weak crude prices could be extended if necessary, but the decision is not imminent, Russian Energy Minister Mr Alexander Novak said. He was commenting on the deal after a meeting with Saudi King Salman in Riyadh. Mr Novak said through a translator “We’re ready to discuss the topic and if need be we’re ready to consider an extension.”
He said that “But we would need to analyse a lot of data in order to understand the picture at the time of taking this decision and so this is why we believe it could be taken at a later date.”
The Organization of the Petroleum Exporting Countries and other leading oil producers including Russia agreed to cut their combined oil production by almost 1.8 million barrels per day and keep the lower level of output until the end of March 2018.
OPEC, Russia and other oil producers are due to meet at the end of November in Vienna to decide whether to extend the current supply cut pact.
The deal has already been beneficial to the oil market, which saw the prices recovery to more than USD 60 per barrel, unseen since mid-2015.
However, the market is yet to find a supply and demand balance, while stockpiles in developed countries are still above the 5-year average. Source : REUTERS Pipe Industry Co., Limited (www.wilsonpipeline.com)
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