Minister of energy of the Russian Federation added oil a couple of dollars, and OPEC is more cautious

Minister of energy of the Russian Federation added oil a couple of dollars, and OPEC is more cautious


The cost of April futures on North sea petroleum mix of mark Brent has grown on 3,07% – to 34,97 USD per barrel (during the day reached 36,73 dollar). The price of March futures for WTI crude oil rose 2.45% to 33,09 USD per barrel (34,81 USD).

MOSCOW, 28 Jan. Talk about planning in February a meeting of world oil powers and the likelihood of joint action have become a positive signal for the market. After statements of the Minister of energy of Russia Alexander Novak about the possibility of reducing the extraction of each of the world’s oil industry in the amount of up to 5% commodity quotes turned upwards, adding a couple of dollars.

In this case, the OPEC came quite in other news: after statements of the Russian Minister, the Agency Bloomberg with reference to the delegates from OPEC said that no meeting of the members of the organization with Russia is not planned, and Saudi Arabia did not offer to reduce production by 5%.

As at 18.45 Moscow time the price of April futures on North sea petroleum mix of mark Brent has grown on 3,07% — to 34,97 USD per barrel (during the day reached 36,73 dollar). The price of March futures for WTI crude oil rose 2.45% to 33,09 USD per barrel (34,81 USD). At the opening of trading Thursday the price of WTI started with level 32,19 dollar, while Brent — 33,79 dollars per barrel.

About the ability of Russia to participate in the upcoming February meeting of OPEC and the countries not members of the organization, it became known on Wednesday after meeting the head of Department with the representatives of oil and gas companies.

On Thursday, Novak reaffirmed Russia’s readiness to start negotiations with your “oil colleagues” and said that while the meeting is being prepared at the Ministerial level. According to the head of the Russian Ministry of energy, discussed at the meeting will be the question of reduction of oil production of each producing countries at the level of 5%, but you need General agreement.

“Actually, it really is considered to be not so straightforward, a lot of questions on the reduction control, from which base to consider, and so on. Therefore, in order to at least begin these questions to work, you need General agreement from the beginning. So too early to tell,” said Novak.

At the same time, the surveyed analysts warn that a possible agreement on mutual commitments of the extractive countries may carry some risks, including for Russia.

“Doubt that it (the joint reduction of production — ed.) are achievable, very much, because those countries that will be honest to follow these commitments, you can just lose because less responsible States will occupy their market niche. We see that for large producers such as Saudi Arabia, Iraq, and for us, the issue of preserving market share is not less important than the issue price. So now, agreement will be difficult, but we need to talk already”, — said the analyst of “Sberbank CIB” Valery Nesterov.

The survey

What will happen to oil prices in 2016?

  • Will collapse to $ 20 per barrel
  • Will remain at around 30-35 dollars
  • Edge up to 45-50 dollars
  • Soar to 90-100 dollars

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