Russia to consider extension of OPEC+ output cut deal

Russia will carefully consider extending its oil output reduction agreement with the Organization of the Petroleum Exporting Countries (OPEC) and other producers, Russian First Deputy Prime Minister Anton Siluanov told Reuters on Wednesday.

Moscow will weigh, in particular, the deal’s positive effect on oil prices against losses in market share to United States companies, he said.

“There are many arguments both in favor of the extension and against it,” Siluanov said on the sidelines of a conference in Kazakhstan.

“Of course, we need price stability and predictability, this is good,” he said. “But we see that all these deals with OPEC result in our American partners boosting shale oil output and grabbing new markets.”

Russia’s energy ministry and government will determine their stance on the pact’s extension after weighing these pros and cons and the longevity of current market trends, Siluanov said.

OPEC, Russia and other producers agreed to cut output by 1.2 million barrels per day (bpd) from January for six months to boost oil prices by reducing global inventories.

OPEC and the other producers involved in the supply agreement, an alliance known as OPEC+, are scheduled to meet to discuss extending the pact in Vienna during an OPEC meeting scheduled for June 25 and 26.

The meeting, however, may be pushed back to July 3 and 4, two OPEC sources said on May 20.