A decision on cutting oil production is possible only if all crude exporting nations are in consensus, and there is no timing for talks yet, Russia’s Energy Minister Alexander Novak said in an interview.
“We’re ready to discuss the issue of cutting oil output volumes, but this isn’t a decision,” Novak said in an interview with Bloomberg. “We’re ready to consider the possibility. This should be a consensus. If there’s a consensus, it makes sense, if not, it’s not.”
Novak said he has confirmed Russia would participate in talks with both OPEC and non-OPEC nations that Venezuela has proposed for February. There is no date and no confirmed meeting yet, Novak said. Delegates from the Organization of Petroleum Exporting Countiesyesterday said they have no meeting planned.
Brent oil on Thursday rose as much 8.3 percent after Novak’s comments were reported. Prices on Friday extended gains.
Until this week, Russia, which relies on energy for more than 40 percent of its budget revenue, had repeatedly stated its goal of keeping crude production stable even as prices tumble. Still, this month’s price slump to a 12-year low has put the country under increasing financial pressure.
The Finance Ministry says the nation’s budget deficit, already at a five- year high in 2015, may widen this year as the rout deepens.
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