Up after the conclusion of the agreement and non-OPEC countries to reduce oil production, the oil price was “closer to fair” than they were before, says the head of the Russian Ministry of energy Alexander Novak.
“The effectiveness of the agreements and decisions already visible, as we noted the stabilization of the price level of $55 per barrel. According to leading analytical agencies, the price is much closer to a fair price, about $10-15 higher than it would be without the transaction,” said Novak at last Wednesday’s meeting of President Vladimir Putin with members of the government (quoted by “RIA Novosti”).
According to the Minister, the compliance by all parties to the agreement on the limitation of production will allow for mid-year to reduce the world’s oil reserves in the vaults before the average for the five years that will help “to balance and stabilize the oil market.”
“In General, the parties to the agreement on the reduction of oil production, according to preliminary data, reduced production in January by 1.4 million barrels. a day,” explained Novak.
Russian oil production in January 2017 declined by more than 117 thousand barrels. a day, more than double the original plans. In the first half of 2017 Russia should reduce oil production by 300 thousand barrels. a day.
The Minister stressed that the Russian oil companies cut production voluntarily as it “really beneficial” both for the companies and for the Russian budget.
In the course of trading on the stock exchange ICE cost of a barrel of Brent oil today is around $56, remaining slightly above the closing level of the previous trading session.