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25 Nov, 2014 16:25

Russia, Saudi Arabia, Mexico, Venezuela decide not to cut oil production

Russia, Saudi Arabia, Mexico, Venezuela decide not to cut oil production

Delegations from Russia, Saudi Arabia, Mexico and Venezuela have met for the first time in such a format for talks in Vienna to discuss rapidly dropping oil prices. The group agreed to monitor prices for a year

READ MORE: OPEC may decide to give Iraq, Iran, and Libya immunity from oil supply cut

The energy ministers have not agreed upon cutting oil production, as such agreements can only be reached during OPEC meetings, the Venezuelan Foreign Minister Rafael Ramirez said following the talks held at the Park Hyatt in Vienna on Tuesday.

He added that the group also believes the current oil prices are too low, and named a fair price at $100 per barrel.

Russia’s Energy Minister Aleksandr Novak and Igor Sechin, the head of state oil company Rosneft, attended the meeting.

Sechin said the group agreed to monitor prices during the year and possibly meet in the same format each quarter.

Though the oil price has dropped by almost $40 per barrel in the past five months, it is “not critical” the Rosneft head told journalists.

“We can move the implementation period of certain capital-intensive projects. But of course, it will affect the overall level of oil supply," he added.

He said that Rosneft has already reduced its production by 25,000 barrels per day. However, this was done due to an increase in production efficiency and the effectiveness of the company's shareholders, as well as the terms of market distribution, Sechin said.

The unexpected talks come amid a roughly 30 percent drop in oil prices since June. Meanwhile, ministers from OPEC member countries, which do not include Russia and Mexico, are scheduled to meet on Thursday in Vienna.

Oil and gas expert at global management consulting firm A.T. Kearney, Joerg Doerler, told RT that among the factors influencing the global oil market is the production of US shale reserves.

“Another very important factor influencing the dynamics in the global oil market is the demand side, where economic development is very weak in Europe and in China. So as long as that has not been resolved I think oil prices will remain at the level where they are,” he said.