Russian Energy Minister Says Oil Output Freeze Deal Will Be Done By Mar 1
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Consultations on a preliminary deal between leading oil producers to freeze output should be concluded by March 1 after a group led by Russia and Saudi Arabia reached a common position this week in Doha, Russia‘s energy minister said.
In a television interview aired on Saturday, Alexander Novak also said that the agreement announced on Feb. 16 was weighty enough.
“Those countries which have openly supported this approach are producing around 75 percent out of global (oil) export volumes. My point is that, in practice, this is enough to agree,” Novak told the “Vesti on Saturday” program.
“I believe that they (Mexico and Norway) would take a constructive stance,” he said.
Oil prices have crashed more than 70 percent in the past 20 months, driven by near-record production by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, adding to one of the worst supply gluts in history.
Novak said Iran had taken a relatively constructive stance on the Doha deal but not yet said it was ready to sign up to the proposals.
Oil freeze doesn’t need Iran for impact
Naimi to front up at Houston oil conference
Meanwhile, Saudi Oil Minister Ali Al-Naimi will this week address the U.S. shale oil producers hit by OPEC‘s policy of maintaining supply levels in the face of a glut in order to depress oil prices and force out higher-cost producers.
Many commentators blame the Saudi-led policy for the 70 percent drop in oil prices, despite the fact that soaring U.S. shale output brought on by the hydraulic fracturing revolution also contributed to oversupply –
Naimi will deliver the keynote address on Tuesday at the annual IHS CERAWeek conference in Houston. It will be Naimi’s first public appearance in the U.S. since OPEC ‘s shock decision in November 2014 to keep heavily pumping oil even though mounting oversupply was already sending prices into free-fall.
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