Economist: oil will react poorly to the possibility of a meeting of OPEC and Russia

Economist: oil will react poorly to the possibility of a meeting of OPEC and Russia

The decline in production can only stop the decline in oil prices and is able to keep it at a “reasonable level” of between 30 to 40 dollars per barrel, the Director of PetroleumWorld energy Agency.

MEXICO city, 29 Jan –, Dmitry Znamensky. The situation in the oil market will be receptive to a potential meeting between OPEC and Russia, but not very strongly, said oil analyst and Director of the energy Agency PetroleumWorld Elio EIA.

Earlier, the head of the energy Ministry of Russia Alexander Novak said that Russia is ready to meet with OPEC and other oil producers in February on the issue of oil prices and the coordination of possible decrease of production. However, OPEC reported that such meetings are not yet planned.

“The current situation, though difficult, but will react to a possible agreement, if such producing countries as Russia and OPEC, read Saudi Arabia, will reach agreement, I believe, this is possible if all of us follow the latest Saudi proposal to reduce production by 5%,” said the EIA.

According to him, Russia, controlling along with Saudi Arabia oil production totaling about 20 million barrels a day, is a key player in a possible meeting, but the market will have to respond to important participants. “Another heavyweight here are the United States, producing about 9 million barrels per day,” said the EIA.

At the same time, the expert stressed that even in case of reaching an agreement on reducing production to wait too much change in the price of oil is not worth it.

“This decline, if it is, in my opinion, will have an impact only on the oil drop is suspended, and to maintain prices at a reasonable level at 30 to 40 dollars per barrel in the coming months”, said the EIA.