Novak says OPEC+ committee recommends excluding numbers on gas condensate from Russia's oil output monitoring
|Russian energy minister, Alexander Novak, says OPEC+ committee recommends excluding numbers on gas condensate from Russia's oil output monitoring.
- Says all OPEC+ members agree with recommendation on gas condensate.
- Production cuts by the Organization of the Petroleum Exporting Countries and its allies would total 1.7 million barrels per day in the January - March period and that all the countries should fully comply with their commitments.
- OPEC+ ministerial panel has recommended deepening oil production cuts by 500,000 barrels per day (bpd) in the first quarter of 2020.
Novak said on Thursday that an OPEC+ ministerial panel has recommended excluding data on gas condensate from oil output figures for all non-OPEC members, including Russia. "All OPEC+ members have agreed with the recommendation not to include gas condensate numbers in the overall oil output, switching to the same methodology that OPEC countries are already using, Novak told reporters," – Reuters.
Market implications
The price of oil has been trading at its highest levels since late September and scored through the $59 handle on expectations where OPC members are expected to agree on deeper output cuts in an attempt to prop up prices and prevent a glut next year. Reuters news agency reported that OPEC+ was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (bpd) from their current level of 1.2 million bpd. The meeting is taking place in Vienna today and is ongoing. It will be followed by a gathering on Friday with Russia and other producers.
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