MOSCOW (Sputnik) — The Vienna agreement on oil output cuts can be extended for another six months – until the end of 2017, or more, in case the decision on prolongation of the deal is undertaken, Russian Energy Minister Alexander Novak said Saturday.
"I think we will be considering at least six months, maybe more," Novak told reporters.
The minister added that in case the Vienna agreement was prolonged, the oil market would be balanced at the end of 2017 or in the beginning of 2018.
"We need to monitor many factors that affect it [oil market balance]. I think that before the end of the year, maybe during the next winter period – by that time, maybe. Based on the current dynamics of reduction of stocks of oil and oil products, we see that this reduction, which will reduce [the values] to the average five-year values, will happen by the end of 2017, maybe in 2018," Novak said.
In December, Novak said the global market was likely to get rid of excess oil supply in the second half of 2017.
The volume of oil output cut among the parties to the Vienna agreement would likely be maintained for all its participants in case of extension of the accord, Novak said.
"Everyone, who has reduced [the output] would keep the level, if we prolong the agreement," Novak told reporters.
The existing conditions would also likely to be in effect for Russia and this issue would be discussed on May 24-25 in Vienna, Novak said adding that the volume of cuts would be set taking into consideration the October figures.
On November 30, 2016, OPEC countries agreed on reducing oil production by 1.2 million barrels per day for the first six months of 2017, with a daily cartel-wide cap standing at 32.5 million barrels. Non-OPEC countries agreed to reduce output by 558,000 barrels a day, with Russia pledging to cut production by 300,000 barrels daily. The deal expires in June. The decision on the future of the agreement will be made in Vienna on May 25.
