Monitoring Committee satisfied with implementation of oil production agreement

Baku, January 23, AZERTAC

The first meeting of the Ministerial Committee on the implementation of the agreement on the reduction of oil production was held on Sunday in Vienna on a positive note: the participants noted the implementation by all countries of commitments, with some even ahead of schedule, stated about the expectations that the Agreement will continue to be fulfilled and the market will soon be balanced.

Representatives of five countries — Russia, Kuwait, Oman, Venezuela and Algeria — have discussed the November decision of OPEC to reduce its production by 1.2 million barrels a day from October level — up to 32.5 million barrels, and similar agreements December eleven countries outside OPEC, agreed on a reduction of its production a total of 558 thousand barrels per day. The agreement was concluded for the first half of the year with the possibility of extension.

As noted by co-chairing the Committee, the Minister of energy of Russia Alexander Novak, the reduction of oil production, according to available data, is 1.5 million barrels per day, but this figure does not include all 24 countries of the agreement. According to him, really in January, the decrease will be more than 1.7 million barrels per day. On the basis of the aforementioned obligations of the parties to the agreement, it provides for the total reduction of the production of all countries on 1,758 million barrels per day.

A number of countries implement the agreement at a faster pace and larger volume, in particular Russia, which promised to reduce oil production by 300 thousand barrels per day, has provided a reduction of 100 thousand barrels per day instead of the planned 50 thousand, said Novak.

At the meeting it was decided that the Ministerial Committee will meet every two months, prior to the may OPEC meeting will have two meetings – the nearest will take place after March 17. Novak did not rule out that it will be held in Kuwait.

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