US ready to cut oil output by 2-3 mbpd, says Russia’s energy minister Novak: Reports

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The US is ready to cut oil output by 2-3 million barrels per day Russia’s energy minister Alexander Novak said on Sunday, according to new agency Interfax, Reuters reported.

Novak added that he hopes that oil talks with the US will restore mutual trust and lead to continued energy dialogue.

Earlier Novak said he hoped that the world’s leading oil producers will fully agree and sign a historic deal to cut global crude output in the coming days, Russian state-run RIA news agency reported.

The Organization of Petroleum Exporting Countries (OPEC), Russia, and others, a group called OPEC+, are meeting again Sunday to discuss a 10 million barrel per day (bpd) oil cut. The group met last Thursday but the agreement hit an impasse, however, with Mexico refusing to adhere to a 400,000 bpd cut.

An oil output deal is crucial to solving the market’s chronic oversupply problem. Saudi Arabia has made it clear that any deal is contingent on all global producers cutting output in tandem, including the US and Canada.

With agencies.

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