Russia May Begin Oil Supply Cuts in March

The head of Russian pipeline monopoly Transneft, Nikolay Tokarev, said Russia's oil output cuts could begin in March, Reuters cited Russia's Interfax news agency as saying. The Organization of Petroleum Exporting Countries agreed last week to reduce oil output by around 1.2 million barrels per day beginning in January in a bid to reduce global oversupply and prop up prices. The group hopes non-OPEC countries, including Russia, will contribute another 600,000 bpd to the cut. Russia has said it will reduce output by around 300,000 bpd. However there are concerns and skepticisms that oil producers will not roll back production as planned in the Nov. 30 meeting in Vienna. With cuts only being implemented next year against end of 2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains in place next year.