“We talked with our colleagues that the price of oil at $50 per barrel in the long term would satisfy both consumers and exporters,” — said energy Minister Alexander Novak in interview to the program “Vesti on Saturday”.
The collapse of world oil prices began in 2014. In the summer of 2014 a barrel of Brent cost $115 in January 2016 price hovered around $30, on Friday Brent crude was worth $33,12.
16 February in the Doha negotiations, the representatives of Russia and the three countries of OPEC: Saudi Arabia, Qatar and Venezuela — have agreed to freeze oil production in 2016 at the level of January of this year, if they will support other producing countries.
All of the countries — exporters of oil will maintain its market share in the stabilization of production, if the market supply increases, said on Saturday Novak. According to him, the idea of freezing already supported the country 75% of oil exporters. In his opinion, it is more than enough to reached in Doha an agreement to start work. “We agreed that all consultations should be completed by 1 March,” he added.
Novak said that initially considered several options for the stabilization of prices: “We considered various options, including the option to do nothing to reduce production volumes and option, which we proposed previously offered, is maintaining the production at the achieved level.” According to his estimates, if the market appears of new volumes of oil, then the imbalance of demand and production will be reduced at least by 1.3 million barrels. a day. “And it would be a positive signal clear for the market that would occur, without violating market principles,” he said.