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Russia may join OPEC deal

26 October 2016 [16:00] - TODAY.AZ

By Azernews


By Nigar Abbasova

Russia, one of the major players in the global energy market, is still negotiating acceptable oil output level with OPEC, while the position of the country on the issue of joining the cuts proposed by the cartel remains indefinite.

Russia's permanent representative to the United Nations in Vienna, Vladimir Voronkov said that the country may change its position and consider the possibility of output cuts in the upcoming OPEC meeting, saying that everything may change in the process of negotiations.

Russian Energy Minister Alexander Novak earlier held a meeting with his Venezuelan counterpart Eulogio del Pino to consider an OPEC agreement on oil output freeze.  

Del Pino arrived in Moscow after accompanying President Nicolas Maduro in his visits to Azerbaijan and Iran. Venezuela is trying to persuade non-OPEC producers to reduce their combined crude production by up to 500,000 bd.  

Securing the commitment of Russia is of utmost importance for the market, as Moscow is expected to account for the largest share of a reduction in output in non-OPEC states. 

Russia pumped a record volume of oil, exceeding 11 million bpd in September.

The country gave a huge supportive sign to the market when President Vladimir Putin supported the recent initiative of OPEC to fix oil production limits, expressing his hopes that the idea will be embodied in an official agreement at the group’s meeting in November.

Despite the fact that Russia favored the idea of a global oil production limit, doubtful analysts still remain skeptical about Russia’s joining the preliminarily agreed cuts.

After his recent talks with Saudi counterpart Khalid al-Falih, Novak said Russia is not yet ready to say whether it will freeze oil production or merely will cut its output, adding that it is too early to speak about any concrete figures.

The Russian minister also said he is confident the current talks on oil production regulation will yield positive results.

URL: http://www.today.az/news/regions/155494.html

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