DOHA: Russia’s energy minister said he was “quite optimistic” that the OPEC will reach an agreement later this month on a planned output cut to shore up prices.
Alexander Novak was speaking after informal talks in Doha with some but not all of his OPEC counterparts ahead of the cartel’s meeting in Vienna on November 30.
Energy, Industry and Mineral Resources Minister Khalid Al-Falih said the Friday meeting went well, but declined further comment and instead gave a thumbs-up sign to reporters.
OPEC’s 14 members have been at odds over the details of the production cut agreed in Algiers in September, which is supposed to lead to a wider agreement with non-OPEC producers including Russia.
Iran has refused to join in until it has restored its market share following the lifting of international sanctions in January.
Iraq has asked for an exemption, saying it needs the income to fund its war against terrorism.
Asked whether he thought Iraq would agree to a freeze or cut at the Vienna meeting, Novak said: “I would say that I am quite optimistic at this point.
“Today’s discussions... do instil optimism in me.
“And I believe that the consultations of technical experts, which are going to be held soon, and other consultations ahead of the 30th November meeting... would result in an agreement.”
He also told reporters that Russia was willing to limit production to “certain levels.”
“We believe that demand will continue to grow.
“Even today we have discussed numbers that demand will grow by 1.1, 1.2 million bpd (barrels per day) next year.
“If we jointly with OPEC can stabilize production and not add to supply then, yes, we believe this will be a very significant step of rebalancing the market.”
OPEC ministers agreed in Algiers to reduce production to 32.5-33 million bpd from the 33.47 million pumped in August, the first cut in eight years.
Al-Falih told the Al-Arabiya news channel in a recent interview that he was “still optimistic that the consensus reached in Algiers to put a ceiling to production will be implemented by adopting ceilings for countries.”
Algeria’s Energy Minister Noureddine Bouterfa said discussions on Friday had been “good” and that “maybe” 32.5 million bdp would be the production target spoken about in Vienna.
Ministers and sources said earlier that OPEC was moving closer toward finalizing its first deal since 2008 to limit oil output.
Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.
Iranian officials attended Friday’s gathering although Minister Bijan Zanganeh did not come.
At the meeting, OPEC member countries proposed Iran cap its oil output at 3.92 million barrels per day (bpd), a source familiar with the proposal told Reuters.
Iran has previously said it would accept a freeze at between 4.0 and 4.2 million bpd.
Gulf OPEC sources have said they wanted Iran to cap output at around 3.6-3.7 million bpd — the volume the Islamic Republic is currently producing, according to OPEC estimates.
The source said Tehran had yet to respond to the proposal.
Iran’s OPEC governor, who attended Friday’s talks, said he was optimistic that the producer group would reach a deal when it gathers formally in Vienna on Nov. 30.
If OPEC reaches a deal on Nov. 30, it may also draw support from non-OPEC members including Russia, which promised to cooperate but so far has refrained from any firm commitment.
Russian Minister Novak also said more non-OPEC producers could join such a pact.
The Azeri Energy Ministry said on Friday it would send a delegation to consultations in Vienna later this month.
Alexander Novak was speaking after informal talks in Doha with some but not all of his OPEC counterparts ahead of the cartel’s meeting in Vienna on November 30.
Energy, Industry and Mineral Resources Minister Khalid Al-Falih said the Friday meeting went well, but declined further comment and instead gave a thumbs-up sign to reporters.
OPEC’s 14 members have been at odds over the details of the production cut agreed in Algiers in September, which is supposed to lead to a wider agreement with non-OPEC producers including Russia.
Iran has refused to join in until it has restored its market share following the lifting of international sanctions in January.
Iraq has asked for an exemption, saying it needs the income to fund its war against terrorism.
Asked whether he thought Iraq would agree to a freeze or cut at the Vienna meeting, Novak said: “I would say that I am quite optimistic at this point.
“Today’s discussions... do instil optimism in me.
“And I believe that the consultations of technical experts, which are going to be held soon, and other consultations ahead of the 30th November meeting... would result in an agreement.”
He also told reporters that Russia was willing to limit production to “certain levels.”
“We believe that demand will continue to grow.
“Even today we have discussed numbers that demand will grow by 1.1, 1.2 million bpd (barrels per day) next year.
“If we jointly with OPEC can stabilize production and not add to supply then, yes, we believe this will be a very significant step of rebalancing the market.”
OPEC ministers agreed in Algiers to reduce production to 32.5-33 million bpd from the 33.47 million pumped in August, the first cut in eight years.
Al-Falih told the Al-Arabiya news channel in a recent interview that he was “still optimistic that the consensus reached in Algiers to put a ceiling to production will be implemented by adopting ceilings for countries.”
Algeria’s Energy Minister Noureddine Bouterfa said discussions on Friday had been “good” and that “maybe” 32.5 million bdp would be the production target spoken about in Vienna.
Ministers and sources said earlier that OPEC was moving closer toward finalizing its first deal since 2008 to limit oil output.
Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.
Iranian officials attended Friday’s gathering although Minister Bijan Zanganeh did not come.
At the meeting, OPEC member countries proposed Iran cap its oil output at 3.92 million barrels per day (bpd), a source familiar with the proposal told Reuters.
Iran has previously said it would accept a freeze at between 4.0 and 4.2 million bpd.
Gulf OPEC sources have said they wanted Iran to cap output at around 3.6-3.7 million bpd — the volume the Islamic Republic is currently producing, according to OPEC estimates.
The source said Tehran had yet to respond to the proposal.
Iran’s OPEC governor, who attended Friday’s talks, said he was optimistic that the producer group would reach a deal when it gathers formally in Vienna on Nov. 30.
If OPEC reaches a deal on Nov. 30, it may also draw support from non-OPEC members including Russia, which promised to cooperate but so far has refrained from any firm commitment.
Russian Minister Novak also said more non-OPEC producers could join such a pact.
The Azeri Energy Ministry said on Friday it would send a delegation to consultations in Vienna later this month.
