Russia will consider carefully extending its agreement to cut oil production with the Organisation of the Petroleum Exporting Countries (OPEC) and other producers, Russian First Deputy Prime Minister Anton Siluanov told Reuters on Wednesday, May 29th.
In particular, Moscow will weigh the positive impact of the agreement on oil prices against losses in market share to US companies, Siluanov said.
“There are many arguments both in favour of the extension and against it,” Siluanov said on the sidelines of a conference in Kazakhstan.
“Of course, we need price stability and predictability, this is good,” he said. “But we see that all these deals with OPEC result in our American partners boosting shale oil output and grabbing new markets.”
Siluanov said that the Energy Ministry and the Russian government will determine their position on the extension of the agreement after studying these advantages and disadvantages and the longevity of current trends in the market.
OPEC, Russia and the other producers agreed to cut production by 1.2 million barrels per day (bpd) from January for six months to boost crude prices by cutting global inventories.
OPEC and the other producers involved in the supply agreement, an alliance known as OPEC +, are scheduled to meet to discuss the deal in Vienna at the OPEC meeting scheduled for June 25th and 26th.
But two OPEC sources said on May 20th that the meeting could be postponed to July 3rd and 4th.