Main scenario for extending agreement to freeze oil production is nine months - Novak
ISTANBUL. May 22 (Interfax) - The main scenario for extending the agreement to freeze oil production is to do so by nine months, Russian Energy Minister Alexander Novak told reporters.
"In our view the growth [for oil prices on Monday] was due to the fat that the situation is stabilizing. Inventory is declining. The agreement reached in December last year is still proving effective, with 1.7 million surplus barrels that had oversaturated the market removed from the market. Stocks are gradually adjusting. But we think not enough time has yet passed to fully balance the market, so we'll be discussing extending the agreement by another nine months at the meeting in Vienna on May 24-25," Novak said.
"The main scenario under discussion right now is to extend [the agreement to reduce oil production] by nine months, to get through the winter period, when demand is very low, and up to April 1 next year," Novak said.
"Ministers from all 24 countries will gather at the meeting [in Vienna on May 24-25]. We'll discuss the real situation with the existing agreement and we'll discuss the situation on the market, and of course the main scenario is to extend the existing agreement," Novak said.