OPEC and Russia could ease the oil output restrictions as early as in March, a report suggests. The leading oil exporters, along with other producers, have veered round to the idea of easing the restrictions, Reuters reported.
The leading oil producers are slated to meet in March, Russian Energy Minister Alexander Novak said in an interview aired on Monday, the agency said. It must be noted that the Organization of the Petroleum Exporting Countries (Opec) and its allies, including Russia, known as OPEC+, had decided earlier this month that decided to prolong the oil output restriction deal until the end of March.
Everything depends on how the situation develops
The alliance agreed to convene again in early March to discuss policy. "We can consider any options, including gradual easing of quotas, including continuation of the deal," Novak told Russia's RBC TV in an interview recorded last week. "Everything will depend on how the situation develops in March and on the forecasts for the following quarters... At the moment, the situation is more or less stable on the market."
Russia's 2019 oil output at record-high
Novak said that cooperation with OPEC will continue so far as it is "effective and brings results, until the market requires it". He said Russia's 2019 oil output was seen at a record-high 560 million tonnes (11.25 million barrels per day) and natural gas output at 737 billion cubic metres.
Oil output is up from a post-Soviet annual average record-high of 11.16 million bpd, or 555.838 million tonnes, it pumped in 2018. Novak, who spoke before U.S. President Donald Trump signed a sanctions bill on the Nord Stream 2 gas pipeline, said that the project would be completed soon.
Last week, the U.S. sanctions on Nord Stream 2 prompted Swiss-Dutch contractor Allseas to suspend pipe-laying activities.
(With inputs from Reuters)
