Russian Minister Says Oil Output Cuts May Grow If New States Join Reduction Deal

Oil output reduction figure, set by November oil production cuts deal agreed by OPEC and non-cartel states, may increase in case new countries decide to join the agreement, Russian Energy Minister Alexander Novak said Wednesday, one day ahead of the oil producers’ meeting where the issue of extending the deal will be discussed.

VIENNA (Sputnik) – Earlier in the day, the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) discussed the prospect of extending the oil output cut agreement and recommended nine-month extension.

“With regard to the states that participate in the agreement, the Monitoring Committee’s recommendation… is to prolong the agreement given the maintenance of the conditions set by the acting agreement… If [new] countries join, the doors are open, then, certainly, the figure [some 1.8 million barrels per day] will increase,” Novak told reporters.

In late November, the Organization of the Petroleum Exporting Countries (OPEC) member states signed an agreement in Vienna on limiting oil production by 1.2 million barrels per day to 32.5 million barrels per day for the whole cartel. On December 10, 11 non-OPEC countries decided to jointly cut oil output by 558,000 barrels per day with Russia cutting the output by 300,000 barrels per day for six months from January 2017.