Putin says no imminent decision on oil production cuts

President Vladimir Putin said on Tuesday that Russia and OPEC should discuss the future of their agreement to reduce oil production later this year, adding that current oil prices were tailored to Moscow .

The Organization of the Petroleum Exporting Countries and other major oil producers, led by Russia, have agreed to reduce their combined production by 1.2 million barrels a day as of January 1 of this year for six months to to balance the market.

Russia is committed to reducing its production by 228,000 b / d, but has struggled to comply with the pact.

Kirill Dmitriev, one of the main Russian officials who favored the pact with OPEC, said Russia wanted to increase oil production when it meets at OPEC in June. due to improved market conditions and declining inventories.

But Putin, the ultimate decision maker in Russia, has apparently softened his position, saying it was too early to judge the opportunity to extend the agreement.

"We are ready for cooperation with OPEC in decision-making […] But whether it's cuts, or simply a blockage of the current level of production, I'm not ready to say it, "said Putin at a conference on the Arctic in St. Petersburg.

"We do not support uncontrollable price increases," he said. Putin also said that current oil prices are suited to Russia, which is heavily dependent on oil and natural gas sales.

Oil producers from OPEC and allied countries are scheduled to meet in Vienna in late June.

"Of course, we and our partners […] closely monitor the market. We agreed that if joint efforts were needed, we would meet in the second half of the year and have discussions, "said Putin.

Putin also said that Russian companies have their own projects and that their intention to develop new areas should be taken into account.

Russian Minister of Energy Alexander Novak said on Tuesday that it would not be necessary to extend the agreement on production if the oil market was to be balanced in the second half of the year. year, announced the RIA news agency.

Novak later said that all options were on the table.