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All Russian Oil Firms to Cut Output

All Russian  Oil Firms to Cut OutputAll Russian  Oil Firms to Cut Output

All Russian oil companies, including champion producer Rosneft, have agreed to cut crude output under Moscow's agreements with OPEC, Russian Energy Minister Alexander Novak said on Friday. Asked if Rosneft would cut production alongside other producers, Novak told reporters: "All companies agree to cut output," Reuters reported. OPEC and non-OPEC producers on December 10 reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries. With the deal finally signed after almost a year of arguing within the Organization of Petroleum Exporting Countries and mistrust in the willingness of non-OPEC Russia to play ball, the market's focus will now switch to compliance with the agreement. Russia, which 15 years ago failed to deliver on promises to cut in tandem with OPEC, is expected to perform real output reductions this time.

 

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