Russia May Suggest Oil Output Cuts, Eyes State Oil Reserve Creation

Russia has already spoken to OPEC members Venezuela and Saudi Arabia about the need to support the oil market and hopes to press its message further in Vienna on Nov. 25, before the producers' group meets.

Russian Energy Minister Alexander Novak said last week Moscow was looking at the option of cutting oil production, but said the measure had yet to be agreed.

A source familiar with the matter told Reuters that the idea in Kommersant was one possible option and that there were other ways of shoring up prices.

In the early 2000s, Russia promised to cut its exports to help OPEC curb a decline in oil prices but never followed through.

In 2008, a high-ranking delegation headed by former deputy prime minister Igor Sechin, now chief executive officer of Russian state oil producer Rosneft, attended an OPEC meeting in Algeria but did not contribute to any supply cuts, despite Moscow needing higher prices at the time.

Some analysts predict that Russia may lose some 350,000 barrels per day of output as soon as next year due to weak drilling and low prices.

And they say it can do little to shore up the oil price because it lacks storage facilities and may be unable to stop pumping at wells for fear they will freeze over.