Investments in the oil industry will continue to decline while maintaining the current level of oil prices, which ultimately will lead to the balancing market, said Deputy Prime Minister Arkady Dvorkovich.
“At current prices, the investment will continue to decline, and at some point it will lead to a balancing of supply and demand, and hence to a further gradual rise in prices” — quoted Dvorkovich RIA Novosti.
The Deputy Premier also noted that the decline in the oil sector creates threats to the market, talking about the return of oil prices to previous levels is not.
“It is clear that I wish the prices were higher, as we see that investment in the oil industry plummeted, and this already creates a serious threat to market stability, but we are not talking about the return of prices to the old values” — said Dvorkovich.
As at 17.16 Moscow time the cost of July futures for North sea petroleum mix of mark Brent grew by 2.82% to 44.85 USD per barrel. The price of the June futures for WTI crude oil rose 1.91% to 44,27 USD per barrel.
17 April in Doha, held talks on the freezing of the production level. 13 OPEC member countries and five independent oil producers failed to agree on the freezing. It was assumed that the freezing of oil production at the level of January 2016 for the six months to October during the year will remove from the world market of 500 thousand to 1 million barrels per day.
The participants of the meeting agreed to revert to this issue at the next summit of OPEC in June. Thus Alexander Novak said that the need to freeze production may fall in a few months.
