Non-OPEC Producers To Cut An Additional 600,000 Bpd Next Week - 9JAOlofofo | Nigeia #1 gossip site.

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Friday, 2 December 2016

Non-OPEC Producers To Cut An Additional 600,000 Bpd Next Week

OPEC will discuss and possibly finalize a deal with producers outside the cartel to reduce global crude oil supply on December 10 in Russia’s capital Moscow, Reuters reported on Friday, citing two OPEC sources.
Earlier reports had put the date and place of the OPEC-non-OPEC meeting for December 9 in Doha, Qatar.
When OPEC said on Wednesday it
agreed to cut the cartel’s total production to 32.5 million bpd, effective January, it hinged the deal on persuading non-OPEC producers to cut around 600,000 bpd.
Russia, which had previously said it would agree to a freeze at current levels, has promised to shave 300,000 bpd off its production, which, it emerged today, hit a high of 11.21 million bpd in November. Deputy energy minister Kirill Molodtsov said Russia would use the November figures in “OPEC agreements”.
His boss, energy minister Alexander Novak said on Thursday that all Russian oil companies are on board with the 300,000-bpd cut.
If Russia sticks to its pledge, the other non-OPEC producers would have to distribute among themselves the remaining 300,000-bpd cut that OPEC is asking for.
Novak said yesterday that other non-OPEC nations, including Azerbaijan, Kazakhstan, Mexico, Oman, and Bahrain, were also ready to join in the cut.
Welcoming the OPEC deal, Mexico said on Wednesday that it would keep its 2017 production target at 1.944 million barrels per day , as set out in state oil company Pemex’s plans, and lower than the expected 2.159 million bpd output for the end of this year. This reduction would help to stabilize the crude oil market and is mostly the result of the natural decline of Mexico’s oil fields, which started in 2004, the country’s energy department said .
Then, it’s Oman that had said weeks before the OPEC meeting that it was
ready to cut by 5-10 percent if the cartel agreed to a deal. Oman’s crude oil production is expected to average more than 1 million barrels per day this year for the first time ever.

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