Russian Minister of Energy Reports From OPEC-plus: Supply Stability a Top Priority for 2018
Today, the OPEC-plus Monitoring Committee is holding its first meeting in Oman. The situation in the oil market is on the agenda.
Our special correspondent Alexandra Suvorova is monitoring the meeting. We've got a live connection.
- Greetings, Alexandra. We're waiting for the details.
- Good afternoon.
Several minutes ago, the meeting of the Committee has begun in Muscat, Oman. The UAE chairs the committee this year. The co-chairs are the Minister of Energy of Saudi Arabia Khalid Al-Falih and his Russian counterpart Alexander Novak. Recently, several meetings were held including the talks between Saudi Arabia and Russia. They were discussing bilateral cooperation and the current situation in the global oil market.
Alexander Novak, Minister of Energy of Russia: "We discussed the market confirmed that our agreement is more than 100% fulfilled and our bilateral relations in the energy sphere. We had signed a road-map with Saudi Arabia that included about 30 projects. We compared notes and agreed to hold a separate meeting in February in order to check the accomplishment status of each project".
In November 2017, the exploration restriction was prolonged until the end of 2018. In late 2016, Russia promised to cut its exploration rate by 300,000 BPD. According to the Ministry of Energy, Russia accomplished the task by 101% in 2016 and a little bit more than 100% in 2017. Meanwhile, Saudi Arabia has cut its exploration rate much more than its colleagues. Today, when oil is sold at $70 per barrel many experts believe the deal is to be terminated. But if previously the members of the Committee had different opinions, now, they are quite unanimous that it's not the price that's important but stability and balance between supply and demand.
Khalid Al-Falih, Minister of Energy of Saudi Arabia: "Our objective is reaching stability by controlling the resources, logistics and the combination of supply and demand. If supply is high the market resources will grow and we'll be in the same spot as in 2014".
The ministers who gathered today in Oman aren't going to discuss the mechanisms for the termination of the deal despite the growing oil prices counting on the possibility that the global oil market might stabilize in this year because the market is making progress in reducing the oil surplus. The news was confirmed by the Ministry of Energy of the UAE.
Suhail Al Mazroui, Minister of Energy of UAE: "We believe the market is still oversaturated. The OPEC members and other countries will be fighting it. The market reacts well so we'll continue to regulate its state. We believe we'll be able to influence the whole market. I can't say for sure when but we believe that the agreement must remain in power throughout the entire 2018".
It was already mentioned that in 2017 Russia fulfilled more than 100% of the deal. The results of the other members will be clear after the meeting of the Monitoring Committee. Next time, more news from the capital of Oman.
Our special correspondent Alexandra Suvorova live from Oman.