Russian Energy Minister Alexander Novak argued Friday that it made sense to put off talks on extending oil output cuts until March, as much could change in the market before the deal runs out in April
MALABO (Pakistan Point News / Sputnik - 29th November, 2019) Russian Energy Minister Alexander Novak argued Friday that it made sense to put off talks on extending oil output cuts until March, as much could change in the market before the deal runs out in April.Reuters reported last week that the Organization of the Petroleum Exporting Countries (OPEC) and major non-member producers could prolong the pact until mid-2020 when they met in Vienna in early December.
"It's too early to talk about this. The deal expires on April 1 and it's still November," Novak said when he was asked to comment on the report, on the sidelines of a Gas Exporting Countries Forum.
Speaking in Equatorial Guinea's capital of Malabo, the Russian minister reminded reporters that all previous extensions to the 2017 deal had been agreed in the month before the expiry date.
"The situation in the market can still change. Why try to predict what happens in four months? We need to monitor the situation and make a decision when necessary," he explained.
Novak said that Russia would propose changing the production quota system to exclude the ultra-light crude known as "condensate." He said it made up 7-8 percent of Russia's total crude output.
The existing arrangement has taken 1.2 million barrels out of daily supply until end of March 2020. Russia cut its output by 228,000 barrels per day. OPEC countries will next meet on December 5, followed by a meeting with non-OPEC nations led by Russia on December 6.
