OPEC Chief: Vienna Oil Output Cap Deal to Stabilize Global Economy

DAVOS (Sputnik) — In November 2016, OPEC agreed to cut oil production by 1.2 million barrels per day to 32.5 million barrels per day for the whole cartel starting January 2017. On December 10, 2016, OPEC finished a meeting with non-OPEC countries in Vienna, at which 11 non-OPEC producers decided to cut oil output by 558,000 barrels per day, with Russia cutting the output by 300,000 barrels per day from January 2017.

"The coming together for the first time in history of 24 producing countries on December 10 in Vienna has, in our opinion, created a global platform of producers with the sole objective of insuring stability in the oil markets in the short, medium and long term. Therefore, there is a great opportunity for all the stakeholders, including the oil and gas industry, to solidify this platform and insure that it continues to perform the stabilization role in the best interests of the industry as well as the global economy" Barkindo said.

Eleven non-cartel members participating in the oil output cut deal are Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan.

In order to secure the implementation of the deal, the output cut monitoring committee was created, chaired by Kuwait from the OPEC side and Russia from the non-OPEC side. The committee also includes Oman, Venezuela and Algeria.

The monitoring committee is due to meet in Vienna on January 21-22.

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