LUKoil: OPEC expects Russia to cut oil production
The Organization of Petroleum Exporting Countries (OPEC) expects Russia to cut oil production to stymie tumbling prices, the head of Russia's largest private producer LUKoil said Monday, reported dpa.
Under OPEC's plan for what may be the cartel's deepest production cutbacks yet, Russia would be asked to cut its output by between 200,000 and 300,000 barrels per day (bpd), LUKoil head Vagit Alekperov said.
He said LUKoil would support cuts on production and was looking at what wells would be least painful to suspend, if the Russian government went along with OPEC's plan.
"It is up to the government to decide. If it decides to make production cuts, we will follow it," he was quoted by news agency Interfax as saying.
Russian President Dmitry Medvedev said last week that Russia could support OPEC's production cuts and even join the cartel to defend its national interest in light of the energy sector's importance to its economy.
OPEC member states will hold an emergency meeting in Algeria on Wednesday after oil prices dropped by more than 60 per cent from a peak of 147 dollars per barrel in July to under 50 dollars.
The cartel is expected to call for a cut of 1.5 million to 2 million barrels per day to turn around falling prices brought on by a weakening in demand amid the global financial crisis.
Russia's output for 2008 has been roughly 9.5 million barrels per day and together with OPEC member states accounts for over half of the world's output.