OIl up On StrOng equItIeS, lIbya Outage

moscow — Russia plans to cut its oil output by at least 50,000 to 60,000 barrels per day (bpd) in January, its energy minister said on Tuesday, less than its final target under a global production deal reached last week, aiming for gradual, smooth reductions.

This would mean Russian oil output coming in at around 11.35 million bpd next month, off the post Soviet-record high of 11.41 million bpd reached in October and down from 11.37 million bpd last month.

Energy Minister Alexander Novak reiterated to reporters that the country planned to cut its oil output gradually.

“Everything will depend on technological and climate possibilities. We will get proposals from the companies,” Novak said.

“We will see how the situation would evolve,” added Novak, who is a part of Russian Prime Minister Dmitry Medvedev’s delegation to the Arctic Yamal peninsula where local gas producer Novatek is expanding liquefied natural gas production.

The Organisation of the Petroleum Exporting Countries and some non-Opec producers including LONDON — Oil rose on Tuesday, recouping some of the previous day’s hefty losses as a modest show of strength in global stocks, a slightly weaker dollar and an unplanned supply outage in Opec member Libya lent support.

Brent crude oil futures were up 45 cents on the day at $60.42 a barrel at 1230 GMT, having fallen 3 per cent the previous

Russia last week said they would curb oil output by a combined 1.2 million bpd.

Supporting price

They are looking to prop up oil prices that plummeted below $60 per barrel from a 4-year high above $85 hit in October on oversupply worries.

Of that, Russia undertook to cut 228,000 bpd.

According to the initial agreement between Opec and other producers, reached in late 2016, Russia also had to gradually cut its oil production, by 300,000 bpd from 11.247 million bpd reached in October that year.

“It was not that gradual 2 years day, while US futures rose 56 cents to $51.56 a barrel.

A modest boost for the oil price came from a shutdown in production in Libya, where the National Oil Company (NOC) declared force majeure on Monday on exports from the El Sharara oilfield, the country’s biggest, which was seized last weekend by a militia group.

Everything will depend on technological and climate possibilities. We will get proposals from the companies Alexander Novak, Russian Energy Minister

ago, there were jumps [in output reduction] in January because of the weather. We will watch and monitor,” Novak said.

Kirill Dmitriev, the head of the Russian Direct Investment Fund, welcomed last week’s deal, saying it is conducive with “strengthening of Russia’s macroeconomic stability”.