February 1, 2017 / 4:04 PM / in 2 years

UPDATE 1-Global oil output cut by 1.4 mln bpd -Russian energy minister

(Adds detail, quotes, background)

By Darya Korsunskaya

NOVO-OGARYOVO, Russia, Feb 1 (Reuters) - Global oil output was cut by 1.4 million barrels per day (bpd) last month, Russian energy minister Alexander Novak told President Vladimir Putin on Wednesday, citing preliminary data.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia agreed in December to cut oil output in the first half of this year by a combined 1.8 million bpd in an effort to tackle oversupply and support oil prices.

Russia has said it would cut production by 200,000 bpd by the end of the first quarter and by 300,000 bpd thereafter.

“Some countries have cut more than was planned and are moving ahead of schedule. Russian oil production was down by 117,000 bpd in January,” Novak said during a meeting at Putin’s Novo-Ogaryovo residence, adding that Moscow was also moving ahead of schedule with its cuts. He did not elaborate on the source of the preliminary data.

A Reuters survey this week put compliance with the OPEC production agreement at 82 percent, with January output cut by more than 1 million bpd in January.

Novak also said that he expects the market to rebalance by the middle of this year and that global oil prices are now much closer to their fair levels.

“We are also noticing a significant decrease in speculative pressure to the prices,” Novak told Putin.

Writing by Vladimir Soldatkin and Denis Pinchuk; Editing by Katya Golubkova and David Goodman

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