Kazakhstan stands for a smooth exit from the OPEC deal with gradual increase in production within a period of 1-2 months, said Energy Minister Kanat Bozumbayev
Answering the question, does Kazakhstan for a gradual exit from a deal with OPEC in a few months or for a sharp increase in production, Bozumbayev said: “the First option”.
In late 2016, the 11 OPEC and independent exporters, including Russia and Kazakhstan signed an agreement on the reduction of oil production. Under the agreement, the parties in the first half of 2017 had to withdraw from the oil market of 1.8 million barrels per day (compared to October 2016).
Within the deal, Kazakhstan has committed to cut oil output by 20,000 barrels per day from November 2016.
At a meeting in Vienna in May 2017, the deal was extended until April 2018, keeping the same quota for all participants and aiming to reduce global oil reserves to the averages for the five years levels.
Bozumbayev noted that Astana has not yet determined its position regarding the necessity of extending the agreement. “It’s a question,” he said, TASS reported.
In addition, Bozumbayev said that Kazakhstan in the current year exceeded its plan and will produce more than 81 million tons of oil. “The annual plan was 81 million tons, I think that will be more,” he said.
The republic follows the agreements on the reduction of oil production, according to the minister.
“Approximately, yes,” he said, answering the question whether the country has entered into the designated parameters of the agreement.
Bozumbaev further noted that he was satisfied with the effect of the oil agreement and the increase in the oil prices, which, in his opinion, would be about $50 per barrel by the end of the year.
Meanwhile, OPEC Secretary General Mohammed Barkindo told reporters that the Joint OPEC-Non-OPEC Ministerial Monitoring Committee will not discuss increasing the overall volume of oil production cuts on July 24 in Russia, saying that it is still premature, Interfax reported.
He also said that the level of implementation of the OPEC Agreement in June is much higher than in May.
While Kazakhstan wants to abandon the deal, Libya and Nigeria may be asked to join the agreement.
Libya and Nigeria, which were exempted from the obligations under the OPEC+ deal, may take part in the meeting of the ministerial monitoring committee in Russia.
Essam al-Marzuk, oil minister of Kuwait, confirmed that representatives of the two countries were invited to the meeting and that they may be asked to limit production, although it is too early to talk about increasing the overall volume of oil production cuts in the OPEC deal.
Today, world oil prices increased amid the reports that Libya and Nigeria were invited to a meeting.
On NYMEX (New York Mercantile Exchange) cost of the US Light crude oil increased $0.75 to stand at $45.35. Price of the Brent crude oil at the London ICE (Intercontinental Exchange Futures) rose $0.35 to trade at $47.69.