Non-OPEC oil producers confirmed readiness to cut oil yields

The non-OPEC oil producers confirmed their readiness to support the cartel, said Iranian Oil Minister Bijan Namdar Zangeneh. Today, OPEC and fourteen other countries, including Russia, gather at a meeting in Vienna to discuss measures to stabilize the market. The non-OPEC oil producers said that they will cut supplies by 558,000 barrels per day.

“I am happy to announce that a historic agreement has been reached”, said Qatar’s Energy Minister, Mohammed Bin Saleh Al-Sada, whose country holds OPEC’s rotating presidency.

Earlier today in the Austrian capital, Russian Energy Minister Alexander Novak said that Moscow is ready to cut oil production by 300,000 barrels per day. Mexico can shrink yields by 150,000 barrels per day, and Ecuador with 25,600 barrels per day. From countries outside OPEC only Bolivia refused to shrink their yields.

Participants in the meeting are sanguine and no risk of failure of the deal, noted Iraqi oil minister Jabbar al-Luaibi.

On November 30, OPEC decided to shrink oil production by 1.2 million barrels per day. The cartel wants to negotiate with countries outside the organization to contribute by additional 0.6 million barrels per day yields decrease to support the stabilization of oil prices.

Saudi Arabia signaled it’s ready to cut oil production more than expected, a surprise announcement made minutes after Russia and several non-other OPEC countries pledged to curb output next year. Riyadh agreed with OPEC on November 30 to cut its production to 10.06 million barrels per day, down from a record high of nearly 10.7 million barrels per day in July.

“I can tell you with absolute certainty that effective January 1 we are going to cut and cut substantially to be below the level that we have committed to on November 30”, said the Saudi oil minister, Khalid al-Falih. “We are ready to cut below the level of 10 millions barrels per day depending on market conditions”, added he.

OPEC will also have its next meeting on 25 May 2017 to monitor the progress of the deal.

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