Baku, Azerbaijan, Oct. 5
Gulgiz Muradova – Trend:
The weaker oil prices have boosted searches for new efforts to balance the market, while more countries are invited to join the deal.
Russia, leading the main oil producers from outside the OPEC cartel, has invited Turkmenistan to join the OPEC oil output cut deal.
Turkmenistan is not going to officially join the deal, but is ready to be an observer and take part in discussions on the current market situation, said Russian Energy Minister Alexander Novak.
Edward C. Chow , Senior Fellow for Energy and National Security Program at Center for Strategic and International Studies, said any attempt to include Turkmenistan, or any other small non-OPEC producers, in the current production cut deal will have very small symbolic significance.
"Turkmenistan's total oil production is only about 150,000 barrels per day. In fact, it may send the market the opposite signal, that the Saudi/Russian-led coalition on production level has run out of ideas," he told Trend.
Asked about OPEC Sec. Gen. Barkindo's call on Asia regions to join efforts to balance the market, Chow voiced disbelief that more Asia can do to help balance the oil market.
"Demand is growing there and China is building strategic oil stocks. Mr. Barkindo statement may just be recognition that Asia is where future global oil demand will be growing and not in the West," he explained.
Meanwhile, OPEC and other oil producers that are parties to a deal to reduce production eye extension in the bid to curb a supply glut
While many voiced possibility of extending deal to three months, Russian President Vladimir Putin said oil cut deal with OPEC could last to to the end of 2018, a longer time frame than others.
The Russian president's comments raise the prospect of a longer extension than others have mentioned. Saudi Energy Minister Khalid al-Falih and other OPEC ministers have suggested prolonging the deal by months but not until the end of 2018.
OPEC and non-OPEC countries extended the oil production limiting agreement for nine months until March 2018 at the meeting in Vienna on May 25.
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