Named as favorable for Russia, the price of oil

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Photo: Matthew Brown / AP Photo

The current price of oil is most favorable for Russia from the point of view of revenues and balancing of the situation on the domestic market. About it on air of TV channel “Russia 24” said the head of Ministry Alexander Novak, RIA Novosti reported.

He said that the oil price in the range of 55-65 per barrel is balanced for both producers and consumers.

Novak also expressed hope that the decision of the Organization of countries-exporters of oil (OPEC) and its partners to cut oil production will at least keep the market current prices. Otherwise the black gold could become significantly cheaper that “a negative impact on the oil industry, and economic indicators”.

Earlier, on 7 December it became known that Russia agreed with the proposal of OPEC to reduce production to 200 thousand barrels per day. Thus, according to the source in the cartel, Moscow was convinced to cut production to 230 thousand barrels. On the news of the agreement of oil soared in price.

The summit of OPEC, together with partner countries outside the cartel for three days led complex negotiations on the reduction of oil production. For a long time, Russia refused to compromise and reduce oil production more than on 150 thousand barrels a day later, however, Moscow changed its position. In total, according to the agreement, the parties to the transaction will be removed from the market at 1.2 million barrels per day, 800 thousand barrels falls on OPEC, and 400 thousand — to countries outside of the organization.

Video, photo All from Russia.

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