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Participants of OPEC agreement see no need to revise deal’s parameters –
Novak
BAKU, Mar 18, 2019 (BSS/TASS) – The participating countries of the OPEC
agreement see no need to revise the parameters of the deal on crude
production cut, Russia’s Energy Minister Alexander Novak told reporters on
Sunday.
“Currently we see no such need. At least, that was not discussed at today’s
meetings. It is important for us now to reach the 100% compliance rate,” he
said when asked a respective question.
Countries participating in the OPEC agreement will discuss possible further
decisions for the second half of the year regarding the crude production cut
deal in May-June, Novak added.
“Our agreement expires at the end of the first half of the year and, of
course, we will be closely watching, monitoring the situation on the market.
We realize that the second or the third quarter will see a seasonal hike in
demand, whereas there is major uncertainty on the market, of course. That is
why we have agreed that we have to continue monitoring the situation and
discuss potential further decisions regarding the second half of the year in
May-June,” he said.
Earlier Novak said that he considers it reasonable to start the talks on
the future of the OPEC+ deal in May. The matter was discussed during his
meeting with Azerbaijani Energy Minister Parviz Shahbazov on Sunday,
Azerbaijan’s Energy Ministry reported.
The OPEC agreement made at the end of 2018 has allowed to reduce the
volatility of oil prices and pass the winter period favorably, Novak said. “I
would like to note that the decisions made last December were right and
positively affect the current situation on the market, the demand and supply
balance. Thanks to joint efforts, we are passing the winter period more
favorably,” he said.
Readiness of charter on cooperation
The charter on long-term cooperation between OPEC and non-OPEC countries is
at a high level of readiness, Novak noted.
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“We discussed during today’s bilateral meetings the issues related to
preparing the document, the so-called charter on cooperation between OPEC and
non-OPEC countries, which is at a high level of readiness now and we assume
could be finally agreed and discussed by the ministerial meeting,” he said.
The charter is a new framework document fixing the format of cooperation
between OPEC and non-OPEC countries, including Russia, which started at the
turn of 2016. The document was planned earlier to be signed at the OPEC+
ministerial meeting in December 2018 but further revisions were required.
In December 2018, OPEC countries decided to cut production by 1.2 mln
barrels per day from the level of October 2018. It is planned that OPEC
nations will reduce output by 800,000 barrels per day, while the remaining
countries – by 400,000 barrels. In particular, Russia will cut production by
228,000 barrels per day. The deal covers the first half of 2019 and may be
revised in April.
Earlier Novak said that Russia would gradually reach the announced volumes
of crude output reduction. He noted that it would be possible to do so
already by the end of March.
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