Russian Deputy Prime Minister determines optimal price of a barrel of oil for Russia

Russian Deputy Prime Minister Alexander Novak told reporters on Friday that the price of a barrel of oil between $ 45 and $ 55 was optimal for Russia to restore production levels.

Russia’s oil production had declined under the “OPEC +” agreement, concluded last April to support oil markets in light of the Corona virus crisis.

Novak, who was previously Russia’s energy minister, also expressed his country’s support for increasing oil production under the “OPEC +” group by an additional 500,000 barrels per day from February 2021 .

Novak added that Russia supports the gradual increase in production to avoid a shock in the oil market, at the group meeting scheduled for January 2020 for the world’s major oil producers, where oil market conditions will be discussed.

The price of a barrel of oil is currently trading above the $ 50 a barrel level, but oil markets are under pressure amid fears that the rapid spread of new strains of the Corona virus could lead to lower demand. of crude.

The countries of the “OPEC +” group agreed last April to cut production to support the global crude market, and since the agreement, the group has gradually reduced the cuts, and the cuts are expected to be reduced by 500 thousand barrels per day next January, which means that this additional amount will be injected into the oil market. .

Source: Novosti

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