- Title: Russian Energy Minister to discuss oil market with OPEC
- Date: 24th October 2016
- Summary: VIENNA, AUSTRIA (OCTOBER 24, 2016) (REUTERS) EXTERIOR OF OPEC BUILDING MEDIA AT ENTRANCE TO OPEC BUILDING RUSSIAN ENERGY MINISTER ALEXANDER NOVAK GETTING OUT OF CAR AND ENTERING OPEC HEADQUARTERS MEDIA WALKING AFTER NOVAK INSIDE OPEC BUILDING, SECURITY BLOCKING RUSSIAN AND OPEC DELEGATIONS SEATED FOR MEETING OPEC DELEGATION WITH SECRETARY GENERAL MOHAMMED BARKINDO IN MIDDLE RUSSIAN DELEGATION SEATED RUSSIAN DELEGATION WITH NOVAK IN MIDDLE MEDIA (SOUNDBITE) (English) OPEC SECRETARY-GENERAL MOHAMMED BARKINDO SAYING: "We believe it is essential that producers, both OPEC and non-OPEC look to address the issue of this not high inventories. This is now central to the return of the balanced market and to re-establish sustainability." OPEC MEMBER STATES FLAGS RUSSIAN DELEGATES LISTENING IRANIAN OPEC DELEGATE LISTENING (SOUNDBITE) (Russian) RUSSIAN ENERGY MINISTER, ALEXANDER NOVAK, SAYING: "Being a short-term measure, freeze or even a cut for a certain period of time, may help to lower volatility in the market and make it more stable." MEDIA (SOUNDBITE) (Russian) RUSSIAN ENERGY MINISTER, ALEXANDER NOVAK, SAYING: "Such measures can help to speed up market rebalancing, which will happen anyway, as demand for oil is growing anyway." PAN FROM RUSSIAN TO OPEC DELEGATION
- Embargoed: 8th November 2016 12:21
- Keywords: Opec Russia oil
- Location: VIENNA, AUSTRIA
- City: VIENNA, AUSTRIA
- Country: Austria
- Topics: Government/Politics
- Reuters ID: LVA00155D6UDJ
- Aspect Ratio: 16:9
- Story Text: EDITORS PLEASE NOTE: AUDIO AS INCOMING
Russian Energy Minister Alexander Novak met with OPEC Secretary-General Mohammed Barkindo on Monday (October 24) in Vienna to discuss how Moscow might be able to help support a possible freeze or cut in oil production.
A short-term cap in oil output would reduce market volatility, Russian Energy Minister Alexander Novak said at a meeting with OPEC Secretary-General Mohammed Barkindo, as both are looking at ways to stabilise oil prices.
"Being a short-term measure, freeze or even a cut for a certain period of time, may help to lower volatility in the market and make it more stable," Novak said.
Russia is the world's largest oil producer but not a member of the Organization of the Petroleum Exporting Countries and its budget has been hit by low oil prices, the same as for many OPEC nations.
Last month in Algiers, OPEC agreed modest output cuts that are due to be set in stone in coming weeks. The goal is to trim production to a range of 32.50-33.0 million barrels per day.
"We believe it is essential that producers, both OPEC and non-OPEC look to address the issue of this not high stock inventories. This is now central to the return of the balanced market and to establish sustainability", Barkindo said.
Novak, who visited Saudi Arabia over the weekend for talks with Saudi Energy Minister Khalid al-Falih, said sharp falls in the price of crude threatened to trigger an oil deficit and unpredictable volatility in prices.
Neither Novak nor Barkindo said at which levels Russia could cap its production, which reached a record-high 11.1 million bpd in September.
Novak has repeatedly said Russia would prefer to freeze output rather than cut but would consider specific steps after OPEC members reach agreement.
- Copyright Holder: REUTERS
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