Russia, Mexico not in favor of oil production cuts
Baku, Azerbaijan, Oct. 19
By Aygun Badalova - Trend:
Russia and Mexico - non-OPEC countries, which have been invited to participate Venezuela-proposed meeting this week - have no intention to cut oil production, International Oil Daily reported.
In total eight countries - Brazil, Colombia, Azerbaijan, Kazakhstan, Norway, Mexico, Oman and Russia have been invited to the technical meeting of oil experts from OPEC and non-OPEC countries that will be held on October 21 in Vienna.
Meanwhile Reuters reported citing Russian Russian Deputy Energy Minister Anatoly Yanovsky, as he doesn't "think that some artificial production cuts will have a significant impact on (price) change."
Mexico, too, said it "will not take part in any reduction in production volume".
Saudi Arabia and other Gulf states pushed OPEC's strategy shift last year to defend market share rather than cut output to support oil prices, which experienced a historic fall as US oil prices fell below $40 a barrel on Aug. 28 for the first time since the 2009 financial crisis.
OPEC last met this summer in Vienna, when it agreed to leave its production ceiling unchanged at 30 million barrels per day. The next meeting of the cartel will take place on Dec. 4.
Currently Venezuela is the one trying to bring together OPEC and non-OPEC producers and make coordinated production cut in order to stabilize oil prices.
The country is going to unveil a bold new oil strategy this month. The proposal would reapply the old mechanism of progressive production cuts to control prices, with a "first floor" of $70 per barrel and a later target of $100 per barrel.