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Norway considers attending OPEC+ meeting on April 9 - oil ministry

Published 06/04/2020, 18:06
Updated 06/04/2020, 18:10
© Reuters.

By Nerijus Adomaitis

OSLO (Reuters) - Norway has been invited to and is considering attending a meeting of top oil producers on April 9 as an observer, and would join in with production cuts if there was broad support to do so, the country's oil ministry said on Monday.

A deal to limit supply between OPEC, Russia and other producers, a group known as OPEC+, that had propped up oil prices for three years collapsed in March, just as the impact of lockdowns to limit the spread of coronavirus destroyed demand.

The ministry reiterated in an email to Reuters that Western Europe's largest oil producer was ready to make unilateral cuts to production if it benefits its economy, but said there were no ongoing talks with oil companies in Norway.

"If a broad group of producers agree on significant cuts in production, Norway will consider a unilateral cut if it contributes to supporting our own resource management and economy, as we have done on previous occasions," the ministry's spokesman told Reuters.

If Norway, which is not a member of OPEC, is represented at Thursday's meeting, it would be at the level of civil servant.

Norwegian Oil and Energy Minister Tina Bru later said the oil industry was facing a "perfect storm".

"It is key to the government to help companies in the oil industry survive this acute crisis," Bru told public broadcaster NRK, without giving specifics as to how the Norwegian government could help the sector beyond considering a possible output cut.

OPEC and Russia have postponed a meeting originally scheduled for Monday to discuss output cuts until Thursday, but one of Russia's top negotiators said the two were "very close" to an agreement.

Sources in Russia and OPEC said previously that other oil producing countries, such as Canada, Norway and the United States, should contribute to the cuts.

Oil prices have dropped as lockdowns across the globe to try to slow the spread of the novel coronavirus have destroyed demand, and as Saudi Arabia and Russia have pumped oil flat out in a battle for market share.

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