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ALL EYES ON RUSSIA

Opec to push for non-member oil production cuts

VIENNA, December 10, 2016

The Opec (Organisation of the Petroleum Exporting Countries) will seek to persuade the non-Opec nations to cut production at its crucial meeting in Vienna on Saturday as part of a newly struck global agreement to stem a crude glut and lift painfully low prices.

Representatives from the Opec will meet their counterparts from Russia, Colombia, Congo, Egypt, Kazakhstan, Mexico, Oman and Trinidad and Tobago to determine quotas that non-Opec producers will commit in support of the group's last month agreement to cut 1.2 million bpd in a bid to stabilise the world oil market, said the state news agency Wam.

Russia has pledged to trim output by 300,000 barrels a day, and Opec members will discuss additional reductions with other suppliers.

The group decided to pump less oil for six months starting January 1 to try to support prices, which fell by about half from their 2014 peak.

At the Vienna meeting, the talks will focus on their contributions to Opec's planned oil output cut to balance the market.

Analysts and observers expect Russia to announce further cut than its previous promise of 300,000 bpd out of Moscow's desire to stabilise world oil markets and bring prices back to levels acceptable to both producers and consumers alike.

They also said Opec's plan to rebalance the oil market will only work if Russia and other countries outside the group follow through on their commitments to rein in production.




Tags: Opec | oil production |

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