Alexander Novak: Russia to consider withdrawal from oil cut deal after market rebalances
Moscow. Moscow will consider the possibility of withdrawing from the OPEC oil production cut deal after the global oil market rebalances, Russian Energy Minister Alexander Novak told Bloomberg TV on Monday, informs TASS.
Iranian Oil Minister Bijan Namdar Zanganeh said earlier that Russia could withdraw from the deal before the end of 2018.
"We believe that as soon as the ultimate goal is achieved, which is the balancing of the market, we will start considering gradual withdrawal or exit from this deal," Novak said. "Only after that further actions are to be considered and taken," he added.
According to the Russian energy minister, the market rebalancing "might start to happen starting from the third or fourth quarter" of 2018.
According to the agreement, in the first half of 2017, the participants had to withdraw 1.8 mln barrels per day from the oil market as compared to the level recorded in October 2016. Russia pledged to reduce oil production by 300,000 barrels per day and reached the quota in May 2017, maintaining it since then.