OPEC, non-OPEC pro­ducer s to meet Dec 10 in Moscow

Ahead of promised cut, Rus­sia’s out­put hits record high

Kuwait Times - - BUSINESS -

OPEC will meet non-OPEC coun­tries to fi­nal­ize a global oil lim­it­ing pact on Dec. 10 in the Rus­sian cap­i­tal Moscow, two OPEC sources told Reuters yes­ter­day. OPEC agreed this week to re­duce out­put by around 1.2 mil­lion bar­rels per day (bpd) be­gin­ning in Jan­uary in a bid to re­duce global over­sup­ply and prop up prices. It hopes nonOPEC coun­tries will con­trib­ute an­other 600,000 bpd to the cut. Rus­sia plans to use its post-Soviet era record high Novem­ber oil pro­duc­tion as its base­line when it cuts out­put un­der this week’s deal with OPEC, Deputy En­ergy Min­is­ter Kir­ill Molodtsov said yes­ter­day.

Rus­sia has promised to grad­u­ally cut out­put by up to 300,000 bar­rels per day (bpd) in the first half of 2017 as part of a deal with other pro­duc­ers aimed at sup­port­ing oil prices. Its daily oil pro­duc­tion rose to an av­er­age of 11.21 mil­lion bpd in Novem­ber, a new post-Soviet era high, en­ergy min­istry data showed yes­ter­day. That was 500,000 bpd higher than in Au­gust, the month be­fore Rus­sia and OPEC reached a pre­lim­i­nary agree­ment in Al­giers to cut pro­duc­tion.

Un­der this week’s fol­low-up agree­ment, the first be­tween OPEC and Rus­sia since 2001, spe­cific cuts for in­di­vid­ual states were set, with al­most all OPEC mem­bers agree­ing to cut from Oc­to­ber lev­els. But Rus­sia will use its Novem­berDe­cem­ber out­put lev­els, En­ergy Min­is­ter Alexan­der No­vak told re­porters on Thurs­day.

Novem­ber’s pro­duc­tion rose only slightly from Oc­to­ber, by just 10,000 bpd, min­istry data showed. “The peak of daily pro­duc­tion for Novem­ber was 11.231 mil­lion bar­rels,” Deputy En­ergy Min­is­ter Molodtsov told a con­fer­ence in Moscow.

“All our agree­ments will clearly be formed around this fig­ure, he said. Lukoil and Surgut­nefte­gas raised out­put in Novem­ber while pro­duc­tion slipped at fields op­er­ated by Ros­neft , Gazprom Neft and their joint ven­ture Slavneft, pre­lim­i­nary data showed. Ros­neft, Gazprom Neft and Lukoil have all launched new fields this year and in­creased drilling, de­spite low oil prices.

En­ergy Min­is­ter No­vak said on Thurs­day that all Rus­sian com­pa­nies would con­trib­ute to Rus­sia’s planned out­put cut. No­vak also said Azer­bai­jan, Kaza­khstan, Mex­ico, Oman, Bahrain and other non-OPEC pro­duc­ers could join the deal and that he ex­pected them to jointly match Rus­sia’s cut of 300,000 bpd. — Reuters

AHMADABAD: In­dian de­liv­ery truck driv­ers wait for cus­tomers at a whole­sale mar­ket in Ahmadabad yes­ter­day. A lot of reg­u­lar ac­tiv­i­ties in­volv­ing pay­ment in cash is see­ing at least a tem­po­rary slow­down af­ter In­dian Prime Min­is­ter Naren­dra Modi an­nounced de­mon­e­ti­za­tion of In­dia’s 500 and 1,000-ru­pee notes, which made up 86 per­cent of the coun­try’s cur­rency. — AP

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