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

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

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