VIENNA – Russia confirmed on Saturday that it will support a plan by the Organization of the Petroleum Exporting Countries (OPEC) and nine other oil-rich nations to increase oil production by 1 million barrels per day (mbd) starting next month.
“Increasing production in one mbd” is the appropriate step to take at this moment because of “current conditions in the oil market,” Russia’s Minister of Energy Alexandr Novak said.
“I think this decision will help create a balance” in the markets, Novak said in a speech during the 4th OPEC and non-OPEC Ministerial Meeting in Vienna, organized by the 14 OPEC members and 10 other oil-rich nations.
The group, dubbed “OPEC+,” was created in 2016 to establish a plan to cut oil production and help increase oil prices.
OPEC+ agreed to cut oil production by 1.8 mbd, representing 2 percent of world oil production, starting on Jan. 1, 2017.
On Friday, the group confirmed that the agreement to cut oil production would continue to be enforced until the end of 2018.
However, since the cut in oil production has been 2.8 mbd, one million more than expected, the group of countries agreed to increase production to make up the gap.
Both Novak and the president of OPEC, Suhail Mohamed al Mazrui, expressed confidence that the cooperation between the countries that make up the OPEC+ will continue into the future.