OPEC waiting for Russia before choosing how much oil to cut

The Organisation of the Petroleum Exporting Countries has made a planned cut in oil output effectively conditional on the contribution from non-OPEC producer Russia, delegates said on Thursday as the group gathered in Vienna for a meeting aimed at supporting battered oil prices.

Five delegates said the group was waiting for news from Russia as Energy Minister, Alexander Novak, had flown back from Vienna for a possible meeting with President Vladimir Putin.

Novak will return to Vienna on Friday for talks between OPEC and its allies, following discussions among OPEC producers.

I am optimistic; there will be a deal, but it is unclear how much OPEC and how much non-OPEC will contribute.

“It is still under discussion,’’ one delegate said.

Three delegates said OPEC and its allies could cut output by one million barrels per day if Russia contributed 150,000 bpd of that reduction.

“If Russia contributed around 250,000 bpd, the overall cut could exceed 1.3 million bpd.

“The cut will be between 1.0 and 1.3 million bpd.

“We just have to see how it will be distributed,’’ another delegate said.

The Middle East-dominated OPEC planned to cut output despite pressure from US President Donald Trump to support the global economy by keeping oil prices low.

OPEC’s de facto leader, Saudi Arabia, has indicated it wants the organization and its allies to curb output by at least 1.3 million bpd, or 1.3 percent of global production.

Riyadh wants Moscow to contribute at least 250,000-300,000 bpd to the cut but Russia insists the amount should be only half of that, according to OPEC and non-OPEC sources.