Major oil producers led by Russia and Saudi Arabia planned on concluding their preliminary talks on freezing crude oil output by 1 March 2016, states Russia’s energy minister Alexander Novak. A meeting with major oil producers concluded in Doha, Qatar, this week.
A conclusive agreement with all oil producing nations could see output falling by 1.3m barrels per day, in line with average daily output of January 2016.
Saudi Arabia, Russia, Qatar and Venezuela have jointly agreed to freeze output to levels observed in Janauary 2016 if other nations agree to do so.
Iran welcomed the move but has not yet formally committed itself to reducing its output. Its Deputy Oil Minister Rokneddin Javadi stated on Saturday that Iran would aim to increase its output to 700,000 barrels per day in the coming months.
Oil output excluding Iran is expected to decline provided other nations resort to reduced production, according to Alexey Texler, Russia’s Deputy Energy Minister.