OpeOluwani Akintayo
with Agency report
15 January 2018, Sweetcrude, Lagos — Indications have emerged that Russia may exit the OPEC’s oil cut deal next week.
According to the country’s energy minister, Alexander Novak, the discussion to take a bow might be thrown on the table in the coming week.
Russia had promised to cut 300, 000 barrels per day since the cut deal began in January 2017.
“We see that the market is becoming balanced. We see that the market surplus is decreasing, but the market is not completely balanced yet and, of course, we need to continue monitoring the situation,” Novak said in a statement to Financial Tribune.
Reports say Russia’s oil majors have been complaining about the deal creating stumbling blocks towards expansion.
Brent is currently at $70 per barrel, signaling re-balancing as the Organisation of the Petroleum Exporting Countries approaches June when the next deal is billed to be struck.
Novak’s statement supports Lukoil’s chief executive, Vagit Alekperov’s words on Friday, that “if the price of $70 remains for more than half a year, we should start exiting smoothly”.
Alekperov is a major shareholder in Lukoil.
However, earlier statements from OPEC showed that the group hopes to extend the deal till the end of 2018.
“The market fundamentals in 2017 have been good, but we’re looking forward to seeing another healthy year of production in 2018. The concern is to achieve the balance between supply and demand, and we’re not yet there,” UAE Energy Minister, Suhail al-Mazrouei had told CNBC in Abu Dhabi.
