The Russian authorities consider the price of a barrel of oil at $45-50 is acceptable to balance supply and demand on the world market, reported on Wednesday by Reuters citing a source informed about the Russian plans.
Ahead of the meeting of oil exporters in Qatar on April 17, discussed the question of how long it is supposed to freeze the oil and how will be monitored the execution of the agreement, said one of the interlocutors of the Agency.
“The level of $45-50 (per barrel) is acceptable from the point of view of balance in the market. If prices rise higher, they can begin the recovery of shale oil”, — the source explained.
An agreement to freeze production is expected to accelerate the achievement of the balance for about six months, said the source Agency. They also added that Russia is not going to contain new oil projects as part of the deal with other major exporters and may use “other methods” to regulate harvesting. In addition, the sources pointed out that the agreement, which will be discussed in Doha, will only touch the freezing of oil production, but not exports.
In January, Russian energy Minister Alexander Novak in an interview called “fundamentally fair” oil price in the range of $40-50 per barrel. “I think by the end of the year we will see these figures — $40-50. And maybe even in average year these figures”, — said the Minister.
Meeting of the largest exporters of oil will take place in Doha on April 17. The meeting will discuss an agreement to freeze production at the level of January 2016, which agreed in February Russia, Venezuela, Qatar and Saudi Arabia. March 31, the oil Minister of Qatar Mohammed bin Saleh al Sada said that the participation in the meeting confirmed 12 countries: Qatar, Russia, Saudi Arabia, Kuwait, UAE, Venezuela, Nigeria, Algeria, Indonesia, Ecuador, Bahrain and Oman. Deputy crown Prince and defense Minister of Saudi Arabia Mohammed bin Salman April 1, said that Riyadh will join the agreement only in the case if Iran agrees to freeze oil production.
The official representative of Kuwait to OPEC Nawal al-Fuzaia told Bloomberg on 5 April that the summit in Doha may reach an agreement even in the event of failure of Iran on freezing production. According to her, due to low prices in oil exporters “have no choice”. However, she did not rule out that the countries agreed to freeze production in February, not January.