Gradual Increase of Oil Output One of Options for OPEC-Non-OPEC Deal in H2 2019 - Novak

MOSCOW (Pakistan Point News / Sputnik - 20th May, 2019) A gradual increase in production by the participants of the OPEC-non-OPEC oil output cut deal is one of the options for the prolongation of the agreement for the second half of the year, Russian Energy Minister Alexander Novak said on Sunday after the OPEC-non-OPEC Joint Ministerial Monitoring Committee's meeting in Jeddah.

"We do not rule out that a shortage will appear in the market in the summer period, taking into account the growth in demand. And one of the possible options is a gradual increase in production in order to meet demand from consumers," Novak said in an interview with the Rossiya 24 broadcaster.

The next regular ministerial meeting will take place in June, he recalled.

"It was entrusted to the technical committee to evaluate several scenarios. ... Then it will be possible to talk about options in the second half of June for joint action in the second half of the year," Novak added.

In late 2018, OPEC and a number of non-cartel exporters agreed on new parameters for oil production cut deal, which has been in force since early 2017, pledging to reduce their daily production by a total of 1.2 million barrels from October 2018 level. The new agreement is designed for the first half of 2019. As part of its deal obligations, Russia is gradually reducing daily oil production by 228,000 barrels from 11.421 million barrels in October.