The leaders of OPEC are ready to reduce oil production by about 4% from their peak, Reuters reported, citing sources. According to them, previously the proposal was discussed during the meeting on 23 October in Riyadh, the meetings of the heads of the oil Ministers of Russia and Saudi Arabia.
Officially it can be considered at a scheduled for the 28-29 October meeting in Vienna, which can take part not only members of OPEC, but also representatives of other major oil-producing countries.
However, according to sources Reuters, Russia has already indicated that it does not intend to reduce the extraction of raw materials, but ready to freeze it at current levels and not increase further.
The news Agency also reported that OPEC leaders opposed the claims of Baghdad that leading the war with the “Islamic state” (an organization banned in Russia) to Iraq as an exception from the General to the OPEC rules should be entitled not to reduce oil production.
“If you reduce, you reduce all. No exceptions,” explained Reuters a source in OPEC, commenting on statements by the Iraqi authorities.
According to other interlocutors of Agency, some concessions can only count Libya, Nigeria and Iran, the oil industry which has suffered from wars and sanctions.
Earlier, the head of the Ministry of energy of Russia Alexander Novak said that during his visit to Riyadh and meeting with the energy Ministers of Saudi Arabia and Qatar reached an understanding of the need for joint action to balance the oil market. “They discussed issues relating to the level of the limitation of oil production in Russia and other countries to join the agreement, but the specific numbers to call is premature,” — said the Minister, explaining that considering solutions that will suit all countries.
In mid-October, Novak said that Russia is not considering the option of reducing the volume of production. “We are considering the option of maintaining production at current levels, the reduction is not considered”, — he said (quoted by TASS).
OPEC September 28, agreed to reduce oil production to 32.5–33 million barrels. a day (in September daily production was of 33.64 million barrels), however, the exact parameters of the transaction between the exporting countries is not yet developed. Final details of the agreement it is envisaged to develop by the next meeting of OPEC, held in Vienna from 30 November. The Minister of oil of Venezuela, Eulochio del Pino on October 25 announced that his country offered outside OPEC countries to maintain the cartel to cut production by 400-500 thousand barrels./day.