Russia is ready to join the actions of OPEC to restrict oil production – Putin
Russia is ready to join the actions of OPEC to restrict oil production, said Russian President Vladimir Putin at the World Energy Congress. He called on other oil producing countries to support this initiative.
"We support the OPEC initiative to commit to the production limits and hope that at the meeting of OPEC in November, this initiative will be embodied in the specific agreements", – said the President of the Russian Federation.
Putin stressed that the freeze or even reduction in oil production is the only solution in the current environment.
"Low oil prices provoked the longest in the last 45 years the cycle of falling investment activity in the industry. Over the past two years, capital expenditure in oil production decreased by almost $ 500 billion. Due to lower investments in exploration lowest recorded in the last 70 years, the increase in oil stocks"- the president of Russia.
"There is no doubt that if the trend of lack of funding will become chronic, and it will result in overproduction of oil scarcity and new price shocks", – he said.
"In this situation, freezing, or even decline in production is perhaps the only solution to save the stability of the global energy", – Putin said.
"This does not interfere with the operation of market mechanisms. On the contrary, it will accelerate the market rebalancing", – he stressed.
According to Putin’s accession oil-producing countries to freeze or reduce oil production "It will give a positive signal to the market and investors". "This will help to calm speculative activity and to avoid another price fluctuations", – he said.
As reported, in late September, the OPEC countries at the informal meeting agreed to reduce oil production from the current 33.24 million barrels per day to 32,5-33 million barrels per day. Legal registration of the decision on production quotas of OPEC oil should be taken at the official meeting in Vienna on 30 November.
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