Thu. Aug 22nd, 2019

Oil Slips As Russia Mulls Production Cuts

Russia’s energy ministry is discussing potential oil production cuts with local producers and will continue talks to come up with a position by the OPEC/non-OPEC meeting in early December, Energy Minister Alexander Novak said on Monday.

We discussed it and we will continue to discuss it, Russian news agency Prime quoted Novak as telling reporters today, but failed market hopes that a deal may be announced this past weekend resulted in a dramatic price slide on Monday with WTI falling below $56.

“We are in constant contact to have a position ready by December,” Novak said.

OPEC and non-OPEC partners in the production cut deal are meeting in Vienna on December 6 and 7, and speculation has intensified over the past week that the cartel and its de facto leader Saudi Arabia may be willing to make another U-turn in oil production policy and decide to cut production next year, just months after increasing output to offset expected losses from Iran and Venezuela.

Russia plans to sign a partnership agreement with OPEC, Novak said on Monday, adding that it would be discussed at the December meeting.

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