MP: the extension of the Vienna agreement will contribute to balancing market

© RIA Novosti / RIA to Novoshepelychi in fotosannette rigs in the Caspian sea. Archival photoMP: the extension of the Vienna agreement will contribute to balancing market© RIA Novosti / RIA to Novoshepelychi the image Bank

The extension of the Vienna agreement to reduce oil production in the first 9 months will contribute to the balancing of supply and demand and pricing of oil in any case, in spite of oil production in America, told RIA Novosti the head of the Duma Committee on energy Pavel Zavalny («United Russia»).

Earlier, Russian energy Minister Alexander Novak said that the parties to the Vienna agreement to reduce oil production at meeting on Thursday unanimously endorsed its renewal for another nine months.

«This is a very good agreement with the fair, optimal balancing of demand and supply and pricing of oil as in the interests of consumers, the interests of manufacturers, because a certain disturbance in this balance contributes… oil production in America. But I understand that continuation of this agreement on the limitation of production will contribute to the balancing in any case. Because there is… limit for the extraction, clean technology in America, and this balancing will simply come and will not delay market», — told RIA Novosti logjam.

The MP added that oil prices will remain in the range of 50-60 dollars per barrel. «I think above won’t, but it’s important to below was not», — he said.

OPEC agreed on 30 November last year in Vienna to reduce production by 1.2 million barrels per day from October levels to stabilize oil prices. Eleven non-OPEC countries, 10 Dec agreed to reduce its production a total of 558 thousand barrels, including RF — 300 thousand. The agreement was concluded for the first half of 2017 with possibility of extension.

The monitoring Committee of the Vienna agreement on the results of the Ministerial meeting on Wednesday recommended extending the agreement for another nine months, leaving unchanged the volume of reductions. The Minister of energy of Russia Alexander Novak reported discussing the option of extending the Vienna agreements for three months after a possible extension of up to April 1, 2018.

On Thursday the Minister of oil of Kuwait Essam al-marzouk said that OPEC agrees to extend the Vienna agreement to reduce oil production for nine months. Later this decision was supported by a number of countries outside the OPEC.

MP: the extension of the Vienna agreement will contribute to balancing market© RIA Novosti, Integratiebeleid in fotomonster and objectives of OPEC

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