Azernews.Az

By Nigar Abbasova

The upcoming meeting of OPEC is still one of the most anticipated events for the world energy market. While investors are still cautious and doubtful about the possible outcome of the meeting, Russia, one of the essential players of the market,said it might consider a freeze of oil production.

Russian Energy Minister Alexander Novak said on November 10 that global crude oil output could be frozen at November levels should the world's leading oil producers manage to reach an agreement.

“This will be discussed depending on when our OPEC colleagues will come to a common understanding. If the decision is made on November 30, then the month of November will be taken as the basis,” he said.

Novak reiterated the importance of the agreement on output, mentioning higher chances of reaching the agreement than before.

The oil market is still heavily oversupplied, while a number of hindrances, including the internal disagreements within the cartel, and the fact that many producers seek exemptions from the preliminary deal complicate the agreement.

Most analyst says the failure in reaching the consensus may deteriorate the situation greatly and push the prices back.

The International Energy Agency (IEA) said in its recent report that the market will remain in surplus throughout the year, with little prospect of oil prices rising significantly higher should no agreement is reached.

OPEC member states agreed to cut cartel-wide oil production to 32.5-33 million barrels per day without placing exact limits for individual countries. The producers are set to finalize the agreement on an oil output freeze at the OPEC summit in Vienna on November 30.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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