Novak promised the balance of oil by the end of the year when freezing production

The planned agreement on freezing of oil production will reach a balance of supply and demand in the oil market by the end of the year. This was stated by energy Minister of Russia Alexander Novak.

“If such an agreement [on the freeze] will be reached, the rebalancing will be reduced, according to our estimates, anywhere from half a year to 9 months. At the end of 2016 — beginning of 2017 we could see the balance of supply and demand, and accordingly, the stabilization of the oil market,” he said (quoted by “RIA Novosti”).

Novak, citing “many experts” said that if no agreement will be reached, balancing can occur only at the end of 2017. Minister of energy explained that the offer on the market could grow even if the price will remain at about $30 per barrel.

According to estimates by the Organization of countries-exporters of oil (OPEC), the overproduction of oil in the world is 1.9 million barrels a day. In mid-February, Russia and Saudi Arabia, Venezuela and Qatar have agreed to freeze production at the January level, if to this agreement will be joined by other major exporters.

Novak said that the initiative is ready to support 16 countries, who represent about 73% of world exports. This allowed the was to reduce the overproduction of 1.3 million barrels a day, noted the Minister. In mid-March, he said that Iran is ready to accede to the agreement.