Opec, Russia see smooth road to global deal on output cut
COOPERATION: Opec hopes non-members will commit to cutting 600,000 bpd of oil
VIENNA: Russia and Saudi Arabia said they expect Opec and non-Opec producers to reach an agreement on Saturday to curtail oil output and prop up prices in the first such joint move since 2001.
“We have a deal already. We are just putting the final touches. Everything is good!” Khalid al Falih, energy minister of Opec’s de facto leader and top oil exporter Saudi Arabia, told reporters.
Russian Energy Minister Alexander Novak, speaking as he joined a breakfast with Opec and non-Opec ministers in Vienna, said: “I don’t see such risks (of a deal failing).”
The Organization of the Petroleum Exporting Countries will meet producers from outside the group later in the day, hoping non-Opec will commit to cutting 600,000 barrels per day (bpd) after its own members agreed a reduction of 1.2 million bpd last week.
Opec Secretary-General Mohammed Barkindo said he expected 12 non-Opec countries to sign a declaration with the organisation and fully contribute to cuts of 600,000 bpd or more.
“This is a very historic meeting... This will boost the global economy and will help some OECD countries to reach their inflation targets,” Barkindo told reporters, referring to the Organisation for Economic Cooperation and Development, which groups most of the world’s richest economies.
On Friday, Saudi Arabia told its US and European customers it would reduce oil deliveries from January, signalling it had already started implementing cuts.
Opec producers Iraq and Kuwait have also told buyers of their crude about planned reductions.
From the non-Opec camp, so far only top global oil producer Russia and Oman have pledged cuts, with Opec and non-Opec sources saying Mexico could contribute as much as 150,000 bpd.
In contrast, Kazakhstan plans to boost output in next year as it launches the long-delayed Kashagan oil project.