Top managers of Russian oil companies and Russian Energy Minister Alexander Novak on Nov. 2 discussed a possible extension of oil output restrictions into the first quarter of 2021, two industry sources said.
OPEC and Russia imposed a record oil output cut in April to support prices as the COVID-19 pandemic shrank demand.
They are considering further steps as the global number of coronavirus cases is rising sharply.
Russian oil companies and Novak discussed three options on Nov. 2, a source familiar with the talks told Reuters on condition of anonymity.
One of the options was to extend the current output curbs into the first quarter of 2021, the source said. The two other options were to increase oil output in January, as planned, or to cut output even further.
Another industry source said a three-month extension of the agreement by OPEC+, as the grouping of OPEC and allied producers is named, was possible because of concern about the impact of the second wave of the pandemic.
Russian oil and gas condensate output rose to 9.98 million bbl/d in October from 9.93 million bbl/d a month earlier, indicating Russia's output was close to its quota or slightly above it.
Russian Deputy Energy Minister Pavel Sorokin, who declined to comment on future OPEC+ decisions, said on Nov. 2 the global oil market would depend on how countries act to the ongoing pandemic.
Russia has said it will not impose a new lockdown despite reporting a record rise in infections, while Europe has turned to wide-scale restrictions.
The sources said the final oil output decision will be made by President Vladimir Putin, who last month did not rule out extending deep oil cuts for longer if market conditions warranted.
OPEC ministers will hold output talks beginning on Nov. 30.
Recommended Reading
Shale Outlook Uinta: Horizontal Boom to Continue in 2025
2025-01-11 - After two large-scale transactions by SM Energy and Ovintiv, the Uinta Basin is ready for development—and stacked pay exploration.
Kimbell Royalty Partners Adds to Permian Portfolio with $231MM Deal
2025-01-07 - Kimbell Royalty Partners is acquiring oil and natural gas mineral and royalty interests in the Midland Basin in a cash-and-equity acquisition worth $231 million.
The Explosive Evolution of Fracking: A 75-Year Journey
2024-12-10 - Despite some initial resistance to the idea, Halliburton and Stanolind Oil pioneered the hydraulic fracturing that led to the shale boom.
Pickering: Will Improving Drilling Efficiencies Outrun Inventory-led M&A?
2024-12-08 - Concerns on remaining inventory are a big driver of M&A activity, but improving drilling efficiencies allow for low rig counts to keep high production, says Dan Pickering, the chief investment officer of Pickering Energy Partners.
Hirs: Investing for 2025—Growth by Acquisition
2025-01-29 - Fundamentals will push against increased production and a buyers’ market will rule.