Putin called unfair the current oil prices

World oil prices remain unfairly low level, the President of Russia Vladimir Putin. However, threats to the Russian economy, according to the head of the state.

“The price should be fair. Now there could be a little higher. But, having in mind that we have a budget, as you know, typeset at the rate of $40 per barrel, today’s price of us basically satisfied,” — said Putin at a press-conference dedicated to the results of the visit held at the Chinese Hangzhou summit of “Big twenty” (G20).

Putin also noted the need for interaction on the world oil market Saudi Arabia and Russia and called fair Iran’s desire to increase the volume of its oil production to pre-sanctions levels.

In the course of trading on the stock exchange ICE cost of a barrel of Brent crude oil on Monday rose to $49,38, which is almost 5.5% higher than the closing level of the previous trading session. A sharp jump in prices was connected with investors ‘ expectations about the agreement of Russia and Saudi Arabia on joint actions on the world oil market.

Later the Ministry of energy reported that frozen production of the question and the sides only agreed to continue consultations and joint monitoring working group. Under the terms of the agreement, the group will monitor the fundamentals of the oil market and to develop recommendations on measures and joint actions to ensure stability and predictability of the market.”

The disclosure details the agreed scope of Russian-Saudi cooperation has disappointed investors and the price of oil went down, dropping the total to nearly $47 per barrel.

“OPEC produces more oil than the market needs right now. If we take as a measure of assessment of the International energy Agency, in the second half of 2016, the demand for OPEC oil will total 33.3 million bbl./day. Even if the production of oil of OPEC will be limited at current levels, the surplus of oil on the market will disappear only in the second half of 2017. We see no fundamental justification for the growth in oil prices”, — the report says Commerzbank.

By 17:35 GMT the price of a barrel of Brent crude on the ICE futures exchange was $47,2.