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UPDATE 1-Russian ministry, oil firms to meet after OPEC talks collapse -sources

Published 10/03/2020, 14:40
Updated 10/03/2020, 14:45
UPDATE 1-Russian ministry, oil firms to meet after OPEC talks collapse -sources
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MOSCOW, March 10 (Reuters) - Russia's Energy Ministry will

meet with the country's oil companies on Wednesday to discuss

future cooperation with the Organization of the Petroleum

Exporting Countries, among other issues, two sources familiar

with the plan told Reuters.

The meeting was convened following the collapse of talks

with OPEC and other oil producers last week which spelled the

end of three years of coordinated output cuts aimed at

supporting prices and reducing stockpiles.

The failure to agree on further action triggered a 25%

plunge in oil prices on Monday towards $30 per barrel, a

four-year low.

Russian Energy Minister Alexander Novak has said curbs on

output should be lifted from April 1 once the current deal

between OPEC and other producers - a grouping known as OPEC+ -

expires.

The meeting may provoke debate about whether to return to

cooperation with OPEC. However, President Vladimir Putin would

still have the last word on how Russia decides to proceed.

Russia's largest oil producer, Rosneft ROSN.MM , has been

the most vociferous opponent of the deal, arguing that the

production cuts have allowed the United States, which is not

part of OPEC+, to boost its market share.

Rosneft, headed by Igor Sechin, a close ally of Putin, and

its managers were targeted by sanctions imposed by the United

States for Moscow's role in Ukraine and oil trading with

Venezuela.

Other producers, notably Russia's second-largest oil

producer Lukoil LKOH.MM , have been positive towards

cooperation with OPEC.

"We plan to discuss whether to return to (cooperation with)

OPEC or not," one of the sources said. The Energy Ministry did

not immediately reply to a Reuters request for a comment.

Novak said on Tuesday that Russia had not ruled out further

joint action with OPEC to stabilise the oil market, a stance

later repeated by the Kremlin.

At the same time, Saudi Arabia said it would increase its

crude oil supply to a record high, raising the stakes in its

standoff with Russia and effectively rejecting Moscow's

overtures for new talks.

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