Russian Energy Minister: No Additional Output Cuts Are Needed

7 Jul 2017   OPEC, Russia

While the oil market is increasingly questioning if OPEC/non-OPEC’s production cuts have any effect, Russia’s Energy Minister Alexander Novak weighed in on Thursday, saying that the production cut pact was working to reduce global oversupply and price volatility, and there was no need to take immediate additional moves to lift the price of oil. “We believe that it is necessary to move within the framework of the agreed decisions and that new, snap decisions are not necessary,” Novak told Reuters in an interview published on Thursday. “I think that the decisions that were taken, they were the right ones,” according to the Russian minister. Any new moves to prop up oil prices would create more “chaos” in the market, Novak told Reuters. The minister was echoing the words of four Russian government officials who told Bloomberg on Wednesday that Russia would oppose any attempts to deepen the oil production […]

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