Russia not ready for more cuts
MOSCOW/DUBAI: Russia isn’t ready to support a possible extension of oil-supply cuts into the second half of the year, even as more crude producers acknowledge they will probably need to do so to achieve their goals of balancing the market and firming up prices.
Five members of the Organisation of the Petroleum Exporting Countries (Opec) have signalled their support for a possible extension, along with nonmember Oman, which joined the deal on output cuts that Opec and 11 other suppliers reached in December. Opec’s biggest producer Saudi Arabia has indicated it’s willing to extend the agreement if global stockpiles remain above their five-year average.
Ministers from seven of the 24 countries participating in the cuts deal met in Kuwait City on Sunday to monitor compliance. They called on Opec to present recommendations next month on whether to extend the accord, which took effect in January, beyond its initial six-month term.
Russia needs more time to assess the market, inventories and production in the United States and other non-Opec countries, said Russia’s Energy Minister Alexander Novak. Opec ministers are due to meet in Vienna on May 25.
Meanwhile, Goldman Sachs said an extension of the joint Opec and non-Opec oil production cut is not warranted unless supply and demand fundamentals deteriorate.
The Opec and other major producers should be wary of extending the cuts unless there is a weakening of global oil demand or output from Libya or Nigeria increases, said the bank in a note from analysts led by Damien Courvalin. Agencies
Russia Energy Minister Alexander Novak says the country needs more time to assess the market, inventories and production in the United States and other non-Opec countries.