RE: What5 Mar 2020 15:14
(Bloomberg) -- OPEC ministers agreed among themselves that oil production should be cut by 1.5 million barrels a day to offset the huge demand hit from the coronavirus epidemic, gambling that they can overcome Russian opposition that could block the move.
Ministers from the Organization of Petroleum Exporting Countries reached an agreement at talks in Vienna on Thursday, delegates said, but Russian Energy Minister Alexander Novak wasn’t present at the conference. On Wednesday, he left the city without giving his support to the production cut favored by Saudi Arabia, instead preferring to maintain current output levels.
A third of the 1.5 million barrel-a-day cut would come from Russia and other non-OPEC allies and the deal is contingent on their backing, delegates said, asking not to be named because the talks were private. Those countries will arrive in the Austrian capital on Friday to discuss an agreement.
If Moscow continues to withhold its support, it’s unclear whether any cut would actually be implemented. Oil rallied initially, then erased gains to trade little changed at $51 a barrel as of 11:42 a.m. in London.