Russia Delays Meeting With Oil Producers On Cuts

Russia Delays Meeting With Oil Producers On Cuts

The meeting between Russia’s largest oil producers and also the energy commission, expected to discuss the implementation of the 300,000-bpd production cut on december 19, has been postponed, Reuters reported on monday, quoting an industry supply.

The meeting was expected to be chaired by Russian President vladimir putin, and also the reason for the postponement isn't however clear.

Rosneft’s chief executive and close putin ally, Igor Sechin, is secretary at that energy commission. Sechin is known for his anti-OPEC position and has claimed that the cartel has lost its influence over world oil when the U.S. shale revolution.

Russia and 10 alternative non-OPEC producers agreed on saturday to cut total oil production by 558,000 bpd as a part of a wider agitate opec, however the details on however Russia goes to execute such a cut haven't however been beat out.

Russia has been pledging 300,000 bpd since OPEC-only nations united to curtail output by 1.2 million bpd. The Russian energy ministry had initial said that it'd announce a production-cut schedule for its oil companies when this weekend’s meeting.

Last week, Energy Minister Alexander Novak held a meeting with oil producers, when that Kremlin spokesman Dmitry Peskov said that Russian companies wouldn't receive compensation for the production cuts.

On saturday, following the deal between opec and non-OPEC producers, Novak said in a statement that as a part of the agreement Russia would lower its oil production by 200,000 bpd within the first quarter of 2017. per Novak, the non-OPEC nations would cut output from october levels.

In order to monitor the compliance with the terms of the deal within Russia, the country would create a monitoring cluster consisting of representatives of the oil companies, Novak noted.

According to Reuters, Russia’s second-biggest producer Lukoil has said it'd be willing to cut output, and Tatneft would be able to cut its production by 20,000 bpd.