Very optimistic statements today, 23 Oct, make the energy Ministers of Russia and Saudi Arabia after the talks, which discussed, in particular, possible freezing of oil production.
Alexander Novak, Minister of energy of the Russian Federation, said that the freezing of oil production issue that will be resolved in the near future. But specific numbers, the Minister called difficult. “We will continue to work with experts. We still have time until 30 November, when OPEC plans to develop a joint solution. Now there is a coordination of positions,” he said.
“Only two months have passed since that moment as Russia and OPEC say that they are ready to settle on the issue of freezing, and possibly reducing oil production. The main question is how ready we are to reduce them. Because of the quota appeared within OPEC for a long time and every month these parameters are violated. Similarly, we have: if Russia in such a contract will come, but understand that it complies with the conditions and the other side – no, of course it will be the inglorious end of all effort.
Negotiations on the reduction of oil production entered into a tense phase
The chance that the situation with Doha, when all declared their willingness to sign the agreement, but in the end no one have not signed, may be repeated. But this does not invalidate currently the fact that OPEC countries and Russia, as a stand-alone player, ready to agree to freeze oil production at current levels, or at least slightly to cut them.
Of course, that OPEC and Russia will agree on the parity, that is, on equal terms, in the sense that the production cuts will occur in proportional amounts. Because if someone cut the volume more, someone less, someone will lose market share, and someone will be able to take place. There are official data, official statistics, produces what every country and what share of the world market they occupy. And the reduction will occur in accordance with these shares,” said BAFS “the Economy today” the independent economic expert Anton Shabanov.
Energy Ministers of the Gulf countries expressed confidence that the oil market will improve in the case that the agreement will be signed on the scheduled November 30, the summit in Vienna. Minister of energy of Saudi Arabia Khalid al-falih made the corresponding statement after talks held in Riyadh. Al-falih noted that the heads of energy agencies of the countries of Council of cooperation of the Gulf (GCC) optimistic in their predictions about further improvements in the market and the termination of the period of decline in prices.
