Baku, Azerbaijan, Nov. 29
By Leman Zeynalova – Trend:
Russia’s Energy Minister Alexander Novak doesn’t plan to take part in OPEC’s Vienna meeting on Nov. 30.
“This is not necessary. We need OPEC to hold a meeting. Of course, if a consensus is reached there and OPEC makes a decision, we will hold talks soon,” RIA Novosti quoted Novak as saying Nov. 29.
In September, OPEC producers agreed during an informal meeting in Algiers to cut down the oil output to 32.5 million barrels per day (bpd) from current production of 33.24 million bpd. How much each country will produce is to be decided at the next formal meeting of OPEC on Nov. 30 in Vienna.
Earlier, Russia’s President Vladimir Putin said that Moscow is ready to freeze output.
This is while leading Russian oil companies, responsible for three quarters of output in the world's largest producer, say they will boost output next year after reaching record levels in recent months.
The US bank JP Morgan believes that there is a 60-percent chance of a successful OPEC meeting in Vienna.
“Assuming OPEC implements the deal we expect to be agreed in late November, oil markets could start to recover in the second quarter of 2017, as tighter supplies and continued demand growth tighten balances,” said the JP Morgan analysts.
If OPEC fails to reach an agreement then JP Morgan expects prices collapse to between $35-$40 per barrel, depending on extraneous factors, such as weather and broader financial market stability.