Russia to Work with OPEC on Oil Market Rebalancing

Russia is ready to continue working with OPEC to help rebalance oil markets, a Russian energy source said on Wednesday, adding that Moscow welcomed a flexible approach by OPEC’s leader Saudi Arabia to accommodate rising output from Nigeria and Libya.

“We welcome the constructive approach and flexibility of our partners in addressing the challenges which arise on the path towards a balanced market,” the source, who is close to the Russian delegation negotiating with OPEC, said.

“Russia itself is fully committed to the spirit of the initiative aimed at stabilizing global crude markets and will continue working with other countries to achieve this goal.”

On Tuesday, a Saudi Arabian industry source said the kingdom hoped to accommodate the rise in production from Libya and Nigeria through supply adjustments elsewhere but emphasized a need to work together with other producers.

Output from Nigeria and Libya has reached a multi-year high in recent weeks, delaying a long-awaited oil market rebalancing.

Six ministers from the Organization of the Petroleum Exporting Countries and non-OPEC producers, including Saudi Arabia and Russia, will meet in St Petersburg, Russia, on July 24 to discuss compliance with production cuts and progress toward market rebalancing.

Source: www.reuters.com