Russia and Saudi Arabia can cut oil production, experts said

© AP Photo / Hasan JamaliДобыча oil. Archival photoRussia and Saudi Arabia can cut oil production, experts said© AP Photo / Hasan Jamali

Russia and Saudi Arabia can work together to reduce the volume of oil production by 1 million barrels per day in the framework agreement on the extension of the limits of oil production, told reporters the head of intelligence for commodity markets in EMEA (Europe, middle East and Africa) Max Layton.

«In our baseline scenario, we expect that Russia and Saudi Arabia will jointly cut production by 1 million barrels (per day — ed.). Production in Russia will decline slightly, and in Saudi Arabia — significantly,» — he said to journalists at the Citi conference, held in London.

On Saturday, Russian President Vladimir Putin at the summit G20 in Argentina, said that Russia and Saudi Arabia have agreed to extend the agreement OPEC+, but there is no understanding of volume. And the Minister of energy of Russia Alexander Novak said that the approaches to future OPEC agreement+ to be agreed in the coming days, before the conference in Vienna.

This week in Vienna will be a meeting of the Ministerial monitoring Committee of OPEC, meeting of Ministers of OPEC member countries and the meeting of Ministers of all 25 member countries of the OPEC agreement+. Market participants expect OPEC+ decisions on the further reduction of oil production.

OPEC and several non-organisation countries (OPEC+) agreed in late 2016 in Vienna on the reduction of oil production to 1.8 million barrels per day from the level of October 2016, of which 300 thousand were in Russia. The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%. Meanwhile, in recent years, the market has a growing fear of oversupply of the commodity in 2019.

Russia and Saudi Arabia can cut oil production, experts said© Infographicsrussia forces in the world oil market

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