03 April 2018, 13:01 / Business

Novak invited OPEC to think about a new format of cooperation with Russia

But there is no talk of Russia joining the cartel Vitaly Petlevoy

The new mechanism, according to Novak, could include the ability to monitor the oil market and exchange information / Evgeniy Razumny / Vedomosti

Russia and Saudi Arabia need to think about the mechanism of interaction between Russia and OPEC, Energy Minister Alexander Novak is sure. According to him, the parties are now looking for a long-term relationship format.

The new mechanism, according to Novak, could include the ability to monitor the oil market, exchange information and “if necessary, implement joint actions, as was the case at the end of 2016,” the minister said. We are talking about an agreement between OPEC and 11 countries that joined the cartel, including Russia, to limit oil production from January 1, 2017. Since then, the agreement has been extended twice. It is now valid until the end of this year.

The mechanism for joint work could be within the framework of meetings between countries that are members of OPEC and those that are not, Novak says. Also, interaction can be established within the framework of any organization that includes all participants in the current transaction. At the same time, he noted that the issue of Russia’s entry into OPEC is not on the agenda. The parties can discuss the format of further interaction in April at a meeting in the Arabian city of Jeddah.

At the same time, Novak noted that limiting oil production is not a panacea, but an emergency measure. The balance of supply and demand in the oil market may occur, according to various estimates, both as early as this quarter and in the fourth quarter, he said. Should the agreement on limiting production by 1.8 million barrels be extended? per day for the first half of 2019, the parties to the deal will discuss it in mid-2018. The decision will depend, among other things, on the economic state of the participating countries, Novak said.