MOSCOW (Reuters) - Russian Energy Minister Alexander Novak said on Monday it could take two to five months to exit a global oil output cut deal with OPEC and non-OPEC countries if and when such a decision was taken, the Interfax news agency reported.
Global producers late last year extended a global oil output cut deal between members of the Organization of the Petroleum Exporting Countries and non-OPEC states until the end of 2018.
The duration of that deal is expected to be reviewed at OPEC’s next meeting in June when member countries will consider the current oil price and forecast prices when considering what action, if any, to take.
“It could take three, four, five months or maybe just two (to exit the deal),” Novak said in an interview with Interfax.
He said that an exact time frame for exiting the deal would be discussed when participating countries decided to end it.
“Everyone supports this scenario,” Novak said.
“Our goal was to take surplus oil away from the market. At the moment, we see that this goal is achieved by two thirds,” Interfax cited him as saying.
“We cannot rule out that the target level for global oil reserves may be reached by the end of 2018.”
Novak said any decision about a gradual exit from the deal would be taken once global oil reserves had fallen back to their five-year average.
Reporting by Andrew Osborn; Writing by Maria Tsvetkova; Editing by Adrian Croft