Russia’s Novak says global oil pact working, no new steps needed

7 Jul 2017   Prices, Russia

Russian Energy Minister Alexander Novak said a global pact by OPEC, Russia and other producers to cut oil output had dampened price volatility and was reducing bloated inventories, so no immediate extra measures were needed to prop up prices. The minister also told Reuters there was potential for an oil price rise from current levels and that $50 to $60 was “fair” value for a barrel, after benchmark Brent fell 20 percent in the first half of the year. It now trades at around $48. The Organization of the Petroleum Exporting Countries and other producers led by Russia agreed to cut production by almost 1.8 million barrels per day (bpd) from January this year to rein in inventories and support prices. The deal runs to March 2018. Despite the initiative, oil prices have registered their biggest first-half decline in almost two decades, as OPEC-led supply cuts have been undermined […]

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