Putin: Russia goes well with a 60 dollar oil



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Russia is comfortable with the current level of oil prices at around 60 dollars a barrel, said Wednesday Russian President Vladimir Putin at an investment forum, also thanking the Saudi Arabia and Crown Prince Mohammed bin Salman for cooperation between OPEC and Russia in the management of the oil market.

Russia is comfortable with oil at $ 60, its budget balanced at $ 40, and for next year the oil price on the balance sheet is estimated at $ 43 a barrel, Putin said. today, a week before the OPEC + meeting in Vienna and a few days before the G-20 summit in Buenos Aires, during which Putin should meet separately with US President Donald Trump and the Crown Prince Saudi.

"We are now in contact with OPEC and if necessary, we will continue this joint work," said Putin, referring to OPEC's cooperation with non-OPEC-led countries. by Russia.

Just two weeks ago, speaking to journalists from the OPEC + agreement, Putin said:

"As for the need to limit or not production, I will not talk about it at the moment. We must be very careful in this regard, because every word is important and affects the revenues of the federal budget. However, it is obvious that we should cooperate and we will cooperate. "

"About $ 70 a barrel suits us perfectly since the spending component of our budget is based on $ 40 a barrel," Putin said in mid-November.

According to Putin, even $ 60 represents a reasonable price of oil for Russia. Moscow has so far signaled its reluctance to embark once again on a further reduction in production, as its oil output reached a post-Soviet peak.

But this $ 60 oil is not as comfortable for the Russian partner in the deal and the de facto OPEC leader, Saudi Arabia, who would prefer oil prices to increase to balance its budget.

Saudi Arabia and Crown Prince Mohammed bin Salman, however, are under pressure from US President Donald Trump to keep oil prices low. The Saudis are unlikely to publicly announce a reduction in their oil production measured in millions of barrels a day, which could be angering President Trump, who stood alongside the kingdom and the United States. Prince in the face of international outcry aroused by the assassination of Jamal Khashoggi.

Putin's remarks today also show support for the Saudi prince, while analysts believe that the G-20 summit in Argentina could be the most important venue for cooperation between OPEC and the Russia in the oil sector compared to the meeting of OPEC + next week.

By Tsvetana Paraskova for Oilprice.com

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