Moscow. July 6. INTERFAX.RU the Deal OPEC+ is effective, despite the recent fall in oil prices, while the change of its parameters are out of date, said to “Interfax” the Minister of energy of Russia Alexander Novak.
However, he noted that the withdrawal from the agreement should be smooth, that is supported by some of the participants. The Minister did not rule out that this issue may be considered on 24 July meeting of the Ministerial Committee for monitoring the implementation of the agreements between OPEC and non-OPEC.
“Despite the recent fall in oil prices, we believe that the transaction OPEC+ is effective, we are seeing the decline in world oil reserves. So while we see no need to deviate from the parameters of the agreements reached on 25 may,” said Novak.
“Responding to momentary fluctuations may give the market the wrong signals. But JMMC (Ministerial Committee for monitoring the implementation of agreements – Interfax) was given additional powers and can now make recommendations on further steps, in response to significant changes in the market while monitoring shows the effectiveness of the current conditions,” he said.
Agreement providing for a reduction in OPEC oil production by 1.2 million barrels per day (b/C) to 32.5 million b/d and non-OPEC – on 558 thousand b/d compared to October 2016, came into effect on 1 January 2017.
At the end of may, the countries agreed to extend the contract by 9 months to 31 March 2018 on the same terms. The purpose of the agreement is to reduce the world’s oil reserves to five-year average.