Rising in price of oil reduces need to freeze

Rising in price of oil reduces the need to freeze the global oil production – Novak

ATHENS (Reuters) – Freezing of global oil production in the conditions of rising commodity prices may lose its relevance, said on Friday the Minister of Energy Alexander Novak.

"Then we started the negotiations at a price of $ 27 (a barrel), now the price is almost $ 50. All different now assess the situation. Balancing market factors begin to work slowly. Gradually, this theme will go"- Novak told reporters in Athens.

On Friday, Brent North Sea oil brand fell by 1.4 percent to $ 48.9 per barrel.

In mid-April, 18 leading oil-producing countries could not agree on a freezing of oil to maintain the prices of raw materials. At the same time the minister said that in the near future the world oil prices could rise due to market factors and the need to freeze the production of raw materials will disappear.

"If we said before, at the beginning of the year, the surplus of (oil) could be cut faster, reducing the expense in order not to increase production volumes, today we see that the situation is somewhat different, there are new factors that increased the price"- Novak said on Friday.

Earlier, the Ministry of Energy estimated the surplus on the world market of raw materials in the amount of 1.5 million barrels per day.

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