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    Minister of Energy Alexander Novak

    Oil Production Cut Deal Extension to Stabilize Market - Novak

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    The prolongation of the oil production cut deal by nine months instead of six months will promote the market recovery, Russian Energy Minister Alexander Novak said Tuesday.

    ST. PETERSBURG (Sputnik) — The extension of the oil production cut deal by nine months instead of six months gives greater certainty for the market recovery, Russian Energy Minister Alexander Novak said Tuesday.

    "We believe that this gives greater certainty in terms of market recovery," Novak told reporters when asked what the extension of the agreement on the reduction of oil production by nine months instead of six would give the market.

    Three to five new countries may join the agreement on oil output cuts, negotiations are underway with them, Russian Energy Minister Alexander Novak told journalists Tuesday.

    "I do not want to name them [possible new participants of the deal], we are working with them. If they agree and participate in the big meeting on May 25, they will inform [us] about it themselves… Three-four-five new countries [are being considered].

    All exporters are known, we will not name them," Novak said. In November 2016, the Organization of the Petroleum Exporting Countries (OPEC) member states reached an agreement to cut oil production by 1.2 million barrels per day in the first half of 2017 to boost global oil prices. The deal prescribes the possibility of extension.

    The OPEC agreement was supported by 11 non-OPEC states, which joined the deal by promising to jointly reduce oil output by 558,000 barrels per day. Russia pledged to cut production by 300,000 barrels daily. The OPEC has already implemented its commitment while non-cartel countries have implemented over half of the agreed upon cuts.

    Related:

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    OPEC Improves 2017 Total Oil Demand Forecast to 96.38Mln Barrels Per Day
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    oil output cuts, extension, deal, OPEC, Alexander Novak
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