Russia has no plans to join the Organization of the Petroleum Exporting Countries (OPEC) but may get the status of observer, Russian Energy Minister Alexander Novak said.
MOSCOW (Pakistan Point News / Sputnik - 09th October, 2018) Russia has no plans to join the Organization of the Petroleum Exporting Countries (OPEC) but may get the status of observer, Russian Energy Minister Alexander Novak said.
"It seems to me that there is no need and no expediency [to join OPEC]. This entails certain obligations, and we have never been part of OPEC," Novak said in an interview with the Rossiya 24 broadcaster on the sidelines of the Russian Energy Week forum.
The minister noted that the instruments to stabilize the oil market, that are currently used by OPEC and non-cartel oil producers, were "rather workable."
"At the same time, we do not have legal obligations, which are quite complicated and, in my opinion, there is no need for this, because there is, for example, a proposal to consider Russia's participation in OPEC as an observer. Such a proposal has been indeed under consideration, but no action has been taken yet. One needs to weigh everything very seriously," he clarified.
The fact that OPEC offered Russia to become an observer country in the organization was revealed in June. Novak then said that Russia would study the proposal carefully.
Russia has been currently involved in close cooperation with OPEC and other major oil producers as part of efforts to stabilize the oil market. In 2016, OPEC and a number of non-cartel oil producers agreed in Vienna to cut oil production by 1.8 million barrels per day. In June 2018, the signatories to the Vienna deal decided to boost the production by 1 million barrels per day because they were over-complying with the agreement. The deal came into effect in 2017 and has been extended until the end of 2018.
