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Abu Dhabi, UAESunday 16 December 2018

Non-Opec nations said to agree to oil production cuts

Russia had already revealed its intention to reduce production by 300,000 barrels a day next year, down from a 30-year high last month of 11.2 million barrels a day.
Saudi oil minister Khalid Al Falih said that Opec is fully committed to the production cuts. Christian Bruna / EPA
Saudi oil minister Khalid Al Falih said that Opec is fully committed to the production cuts. Christian Bruna / EPA

Russia and several other non-Opec nations pledged to curb oil production next year by more than 600,000 barrels a day at a meeting in Vienna on Saturday,

Bloomberg reported citing a delegate source.

It is the first such pact between the two sides in 15 years and follows last month’s agreement by Opec to reduce its own production by 1.2 million barrels a day.

“We managed to gather 25 countries from Opec and non-Opec with the idea of stabilizing the oil market and defending a fair price for our commodity,” Venezuelan Energy Minister Eulogio del Pino said before the meeting.

Russia had already revealed its intention to reduce production by 300,000 barrels a day next year, down from a 30-year high last month of 11.2 million barrels a day.

Riyadh this week informed customers in Europe and North America that it would supply less oil in January than December, reassuring Russia and others in the non-Opec camp that the oil club is making good on its cuts.

“I’m sure you are following the news about actual notifications to the customers by a number of countries notably Saudi Arabia,” Saudi Oil Minister Khalid Al-Falih said ahead of the meeting. “It should be a continuation of the positive spirit of cooperation and collaboration between Opec and non-Opec.”

Abu Dhabi National Oil Company (Adnoc) said on Saturday it would also tell customers early next week about any potential change on their crude allocation for January 2017.

“Any reduction in uptake will be planned, and undertaken, in coordination with Opec, following its ministerial meeting, which was held on November 30, 2016, and stipulated that each member state should adhere to a specified oil output cut,” the oil company said in a statement carried by the WAM news agency.

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