Novak: full implementation of the agreement OPEC+ will lead the market 200 thousand Barr. of oil per day

Novak: full implementation of the agreement OPEC+ will lead the market 200 thousand Barr. of oil per day


TASS, July 24. Full implementation of OPEC and outside of OPEC to reduce oil production will further withdraw from the market, according to estimates of the Ministry of energy, about 200 thousand barrels of oil per day. About it in interview to TV channel “Russia 24” said Russian energy Minister Alexander Novak.

“We believe that those countries which today still do not fully perform their obligations [on the reduction of production], if they fulfill the [agreement] of 100% – this is an additional effect. According to our estimates, about 200 thousand barrels, this should give output to decline relative to today’s level”, – said the Minister.

Novak explained that in the first six months the level of execution of the agreement amounted to 98%.

Earlier, the head of the Ministry of energy noted that monitoring Committee insists on 100% compliance by all OPEC countries+ agreement to reduce oil production.

Novak also said that the energy Ministry sees growth potential in the price of oil, but still retains the forecast of $50-60 per barrel in the second half of the year. “My forecast was that the price in the second half of the year may be between 50 and 60 dollars, let’s see how events will develop. Third quarter special because [during this period] there is a growing demand, so we will monitor it. In principle, I think that today the level of prices sufficiently reflects the real picture, although there is potential growth rates,” he said.

At the end of 2016 11 OPEC and independent exporters of oil, including Russia, have signed an agreement to reduce oil production. According to the agreement, the participants in the first half of 2017 had to withdraw from the oil market of 1.8 million barrels per day compared to October 2016 At a meeting in Vienna in may of this year the country extended the agreement until April 2018, keeping the same quota for all participants. The purpose of the agreement is the reduction of global oil reserves to the average for the five years levels.

Source