OPEC+ Abolishes Oil Output Restrictions as No Consensus Reached on Market Situation – Novak

VIENNA (Sputnik) – The OPEC+ has decided to abolish the oil production restrictions as no consensus has been reached between the 24 countries on the current situation in the market, Russian Energy Minister Alexander Novak has stated.

“This is why, I believe, we are coming to a moment when, starting April 1, we will work without considering the previously active quotas and cuts. However, this certainly does not mean that every country will not analyze the situation developing in the market”, the minister added.

Novak continued on by saying that the OPEC+ will continue working as outlined in the long-term cooperation charter, and no country has any obligation on oil production cuts starting 1 April.

Russia’s oil output increase will now depend on companies’ plans, but no negotiations have been held between the companies and the Energy Ministry so far, the minister went on to say.

The sharp fall in oil prices at the OPEC+ decision to abolish production restrictions under the oil cut deal could be an emotional assessment, there are too many speculative factors on the market at present, the minister said.

Oil prices accelerated their fall to 8.5 percent on the OPEC+ oil cut deal news, as the Brent crude fell below $46 per barrel for the first time since June 2017.

OPEC Cannot Cut Down Oil Output Without Russia, New Meeting Needed

OPEC needs Russia’s consent to cut down oil production, Iranian Oil Minister Bijan Namdar Zangeneh said on Friday, adding that the organisation should conduct another meeting to reach consensus.

The oil minister also said that OPEC could not make a decision on cutting oil production without Russia’s consent.

The negotiations between OPEC+ members on Friday focused on the need to further decrease oil production amid the outbreak of the coronavirus, officially known as COVID-19.

According to the sources from the Russian delegation, Moscow preferred to keep current agreements in place and monitor the situation with COVID-19.

Sourse: sputniknews.com