Russia sees no need in output freeze

By Azernews

By Nigar Abbasova

Russia, one of the world's top oil producers, sees no grounds for new talks on freezing oil production, but is open to negotiations

“We are ready to discuss and monitor the situation, but all depends on whether there will be prerequisites for this,” Ria Novosti quoted Russia’s Energy Minister Alexander Novak as saying.

The issue of putting ceilings on oil production to stabilize prices in the market is expected to be discussed during the upcoming informal meeting of OPEC members in Algeria, which is scheduled for September 26-28, 

OPEC and non-OPEC states are expected to discuss the market situation, including any action that may be required to stabilize prices during the meeting,

“Prices on the oil market are still at a more or less normal level of $50 per barrel. If other countries raise the issue of a freeze, we are ready to discuss it,” he said.

Highlighting the issue of whether production freeze is reasonable or not, Novak said that talks on output freeze could possibly happen if prices fall.

Volatility has dominated over the oil market in the past few weeks. Speculation over potential producer action to support prices is currently one of the main factors that influence oil prices.

Investors and traders were first encouraged by the fact that members of OPEC countries have agreed to meet later this month in Algeria to discuss measures to stabilize prices.

However, pessimism returned soon, as most of the experts scaled up their expectations on a repeat of the Doha meeting, mentioning that there is still a lot of uncertainty.