Global oil output cut by 1.4mn bpd: Russian energy minister

February 2, 2017 10:24 am

Russian Energy Minister Alexander Novak. (Image: Reuters)

* OPEC and other producers led by Russia agreed in December to cut oil output in the first half of this year by a combined 1.8 million bpd

* Russia has said it would cut production by 200,000 bpd by the end of the first quarter

* Novak also said that he expects the market to rebalance by the middle of this year

 

Global oil output was cut by 1.4 million barrels per day (bpd) last month, Russian energy minister Alexander Novak told President Vladimir Putin on Wednesday, citing preliminary data.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia agreed in December to cut oil output in the first half of this year by a combined 1.8 million bpd in an effort to tackle oversupply and support oil prices.

(Russia beats Saudi Arabia as China’s top crude oil supplier in 2016)

 

Russian effort

Russia has said it would cut production by 200,000 bpd by the end of the first quarter and by 300,000 bpd thereafter.

“Some countries have cut more than was planned and are moving ahead of schedule. Russian oil production was down by 117,000 bpd in January,” Novak said during a meeting at Putin’s Novo-Ogaryovo residence, adding that Moscow was also moving ahead of schedule with its cuts. He did not elaborate on the source of the preliminary data.

 

(Russia state fund chief sees alliance with OPEC lasting years)

 

A Reuters survey this week put compliance with the OPEC production agreement at 82 per cent, with January output cut by more than one million bpd in January.

Novak also said that he expects the market to rebalance by the middle of this year and that global oil prices are now much closer to their fair levels.

“We are also noticing a significant decrease in speculative pressure to the prices,” Novak told Putin.

 

(OPEC achieves 82 per cent of pledged oil output cut in January)

 

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Reuters
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