Putin’s statement has pushed up world oil prices


The President of Russia Vladimir Putin supported his statements on Friday, the international price of oil. This was enough for only one answer “Yes” to the question about the possible agreement between the oil producers to freeze production.

In the course of trading on the ICE Futures exchange Brent oil for about an hour rose from $by 45.45 to $46, follows from the data Bloomberg terminal. As of 14:20 GMT, the November Brent futures traded at $46,10 per barrel — an increase of 1.4% from the beginning of the day. Crude oil WTI on the new York Mercantile exchange too expensive: 14:20 GMT the price was of $43.70 per barrel (plus 1,25%).

Prior to this, oil futures finished trading in the red for three consecutive days, notes The Wall Street Journal. As stated by the publication strategist at commodity markets Saxo Bank OLE Hansen, Putin’s words are likely to be among the factors that will help the oil market to stabilize. At the same time, the expert noted that if OPEC and Russia in September will not take any action then prices may resume a decline.

In an interview with Bloomberg Putin said he hoped that oil-producing countries will be able to reach a compromise agreement on the freezing of oil production it would be right for the world market. Meanwhile, Putin said that Iran should make an exception because it started from a very low position (low volume of oil supplies) due to international sanctions.

To the question about how Bloomberg would support Putin freezing of oil production, allowing Iran to compensate for some of their positions, the Russian President replied: “Yes.”

In Algeria, 26-28 September will host the international energy forum, which is expected on the sidelines of the talks representatives of the largest countries — exporters of oil to freeze production levels. Your consent to participate in the negotiations have confirmed Ministers from Saudi Arabia, Iraq and Iran. The Russian Minister of energy Alexander Novak stated that if the meeting takes place, Russia will take part in it.

Previous negotiations between the exporters about the freezing of oil production were held in April 2016 in Doha, Qatar and ended in failure due to the mismatch of the positions of Saudi Arabia and Iran, who did not want to freeze the level of production before it will be released on the pre-sanctions level.

Putin is not the first time for the last time possible verbal interventions that affect quotes. In July, the President at the meeting with Prime Minister Dmitry Medvedev drew attention to the tendency of “perioralny” of the ruble, suggesting to consider further measures in this regard. After these words, the ruble was significantly corrected in the direction of weakening the exchange rate of the dollar against the ruble increased from 62.8 to 66-67 RUB by the beginning of August. In an interview with Bloomberg Putin was asked about these words. The President assured that “never gives directives” of the Central Bank, and his words about “perioralny” the ruble should not be taken as a criticism of the policy of the Central Bank.

Putin explained to Bloomberg that did not Express dissatisfaction with the exchange rate, but simply pointed to the fact that Russian exporters would benefit from a weaker ruble, but the course should not focus on the interests of a particular group or one or two groups,” he said. The immediate reaction of the foreign exchange market the interview did not follow — up as of 14:40 GMT, the dollar was trading at the level 65,70 RUB 15 kopecks below the opening level. However, later the ruble is seriously strengthened against the dollar by 16:00 the dollar was 65,33 RUB.

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