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World oil prices

Russia’s Energy Ministry sees no need to deviate from oil output cuts deal parameters

"Responding to momentary fluctuations may give the market incorrect signals," the Russian energy minister said

MOSCOW, July 6. /TASS/. The Russian Energy Ministry does not consider it necessary to change the parameters of the deal to reduce oil production, Energy Minister Alexander Novak told reporters.

"Despite the recent drop of oil prices, we believe that the OPEC+ deal is effective, we are seeing a decline of world oil reserves. Therefore, for now we do not see the need for deviating from the parameters of the agreements reached on May 25. Responding to momentary fluctuations may give the market incorrect signals," he said.

In addition, he did not rule out that a smooth exit from the deal could be reviewed at the next meeting of the monitoring ministerial committee is on July 24 in St. Petersburg.

At the end of 2016, OPEC and 11 independent exporting countries, including Russia, concluded a deal to reduce oil production. According to the agreements, during the first half of 2017 the participants were to withdraw 1.8 mln barrels per day from the oil market (against the level of October 2016).

At the meeting in Vienna in May 2017, the countries extended the agreement until the end of March 2018 with the goal to reduce global oil reserves to five-year average levels.

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