Russia keeps with oil price forecasts unchanged despite OPEC deal

On Wednesday, OPEC agreed to an historic production cut of 1.2 mln barrels per day, with Russia to reduce its daily output by 300,000 barrels
Russia keeps with oil price forecasts unchanged despite OPEC deal
01 December 13:15 2016 Print This Article

Russia will not change its oil prices forecasts despite Wednesday’s OPEC historic deal on oil output cuts, Russian Deputy Prime Minister Arkady Dvorkovich said on Thursday, reports RIA Novosti.

“I don’t know, but we will not change the forecast, why should we?” Mr Dvorkovich told reporters in a reply to a question on the long-term impact of the OPEC deal.

The Organization of the Petroleum Exporting Countries agreed on Wednesday its first oil output reduction since 2008. The deal also included the first in 15 years coordinated action with non-OPEC member Russia.

The 32.5 million barrels per day ceiling was agreed in efforts to stabilize the market. The cut of 1.2 million barrels per day is effective as from Jan. 1, 2017. Non-OPEC countries have yet to finalize their participation in the production cuts, with Russia announcing its willingness to reduce its daily output by 300,000 barrels.

Saudi Arabia will take the lion’s share of cuts by reducing output by almost 0.5 million barrels per day. The United Arab Emirates, Kuwait and Qatar would cut by a total 0.3 million. Iraq agreed to reduce production by 0.2 million. Being the producer group’s only East Asian member, Indonesia said it would suspend its membership as it was not willing to comply with the output cuts, reported Reuters on Wednesday.

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