Despite Russia’s statement, OPEC denied the 5% reduction in oil production


A member of one of the delegations to the Organization of Petroleum Exporting Countries (OPEC) said that Saudi Arabia did not propose to cut oil production by 5%. This was reported on Thursday, January 28 by a Bloomberg journalist on Twitter.

According to him, OPEC has also no plans to hold a meeting with participation of Russia, who is not a member of the organization.

Earlier on Thursday the head of the Ministry on Energy Alexander Novak said that Russia is ready to participate in a meeting with member countries of the cartel, and other oil producers.

“Currently OPEC is trying to hold a meeting with representatives of both [parties] OPEC and non-OPEC in February. Some countries came out with this initiative, and now details are being worked on,” – said Novak.

As reported by TASS, the minister has also noted that the subject of the forthcoming consultations might be reduction in oil production to a maximum of 5% by each country. The head of the Energy Ministry said that the question of reducing the volume of production, as well as some options were discussed at previous meetings.

Saudi Arabia has not officially commented on Novak’s statement. At the same time, as was noted by a representative of one of the delegation to OPEC, “the Gulf countries that are members of OPEC, and Saudi Arabia are ready to cooperate in order to take any measures that will stabilize the global oil market”.

According to TASS, a spokesman for the White House Josh Ernest said that Russia’s desire to negotiate with Saudi Arabia to reduce production volumes and increase world oil prices indicates the weakness of the Russian economy.

Commodity markets have reacted to the statement by Novak by an increase in hydrocarbon prices. During the trading on Thursday, January 28 the price of a barrel of Brent crude rose to almost $36 (prices fell back later, as of 21:25 MSK on the London Stock Exchange a barrel of North Sea oil worth 34.13 dollars).