The government recognized the lack of effect from the reduction of oil production


The Russian authorities had expected after the decline in oil production in the framework of the agreement with OPEC in world oil prices will rise to $60 per barrel, said Deputy Prime Minister Arkady Dvorkovich.

“Of course, we would like to reach prices of $55-60 per barrel. But the combination of factors gives us to do it,” — said Deputy Prime Minister, acting on total Board of Ministry (quoted by “Interfax”).

The agreement by OPEC and several non cartel countries about the decline in oil production came into effect from the beginning of 2017. However, up to $60 per barrel the price of Brent crude oil over the past three months did not rise, and never even above $58 has been only one (3 January 2017). In the second half of March, the cost of a barrel of Brent remained stable below $55 and rose above $56 just after the missile attack on the United States airbase to the government troops in Syria.

At the same time, Dvorkovich noted that the decision to cut production was correct and helped to improve the situation on the oil market. However, to talk about extending the agreement with OPEC, Deputy Prime Minister, yet, this issue will need to come back in late April — may.

Earlier on Friday, Russian energy Minister Alexander Novak announced that his office discussed with management of oil companies the question of prolongation of the agreement with OPEC, but the decision is still pending.

“We discussed it with the companies and the government. Too early to talk about it. The decision will be made at a later period, on the basis of the analysis of the current situation”, — said the Minister (quoted by TASS).

At the end of March, Novak said that Russia continues to cut oil production under the previously concluded transaction with OPEC.

“The reduction of oil production in January—February were running ahead of schedule. To date, we have achieved a reduction in oil production by 200 thousand Barr./day. We expect to reach the target set by the agreement to the end of April,” said Novak.

At the end of November 2016, OPEC agreed to reduce oil production in early 2017 by 1.2 million bbl./day — to 32.5 million barrels. 10 Dec 2016 11 countries outside OPEC, including Russia, Kazakhstan, Azerbaijan, Oman and Bahrain, had undertaken from January 2017 in total to reduce the volume of oil production at 558 thousand Barr./day. Moscow has pledged to cut daily production of hydrocarbons by 300 thousand Barr. in the first half of 2017.

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