29 October 2017, Sweetcrude, Lagos — The Secretary-General for the Organisation of the Petroleum Exporting Countries, OPEC, Mohammed Barkindo has said Saudi Arabia, the group’s largest producer and exporter, has given consent for further oil cuts to shore up prices.
Saudi Arabia’s nod for cut extension, comes on the heels of the OPEC/Non-OPEC next general meeting in Vienna on November 30.
According to the OPEC chief, Saudi Arabia’s statement has cleared all obstruction to achieving further cut pledges from other members of the group.
“OPEC welcomes the clear guidance from the crown prince of Saudi Arabia on the need to achieve stable oil markets and sustain it beyond the first quarter of 2018,” Barkindo said weekend.
“Together with the statement expressed by President Putin, this clears the fog on the way to Vienna on Nov.30”, he added.
OPEC, Russia, including nine other oil producing countries, pledged to cut a combined 1.8 million barrels per day, bpd since January. The pact has been extended till March next year.
Russia’s Energy Minister, Alexander Novak on Wednesday, said the country will boost crude oil output by 3.5-4.0 million tons in 2018 if a global deal between the OPEC and non-OPEC producers to reduce production is not extended.
“We will now make our forecasts within a range of a possible (output) increase from today’s level, if there is no (extended) deal (with OPEC),” he said.
When asked about the scale of any increase, he said it would be within the range of 3.5 million to 4.0 million tons.
Russia’s oil output is officially forecast at 547 million tons this year and 2018.
On whether the country would stick with the forecast if the global oil output deal is extended, Novak replied: “Yes.”