Monday, October 10, 2016
Russia ready to join OPEC decision to limit crude output — Putin.
Russia ready to join OPEC decision to limit crude output — Putin. (Tass).
Russia is ready to join the decision on freeze or reduction of crude production, which is important for keeping stability on the oil market, President Vladimir Putin said at the World Energy Congress in Istanbul on Monday.
"In the current situation we consider the freeze or even reduction of crude production to be probably the only correct decision to keep the sustainability of the whole global energy (market)," Putin said, adding that the move will help the market to regain equilibrium.
"Russia is ready to join the joint efforts to limit (crude) production and urges other oil exporters to do the same," he said, adding that he hopes the OPEC meeting in November will result in "certain agreements."
According to Putin, capital spending in oil production has dropped by almost $0.5 trillion in two years and the decline in investment in geological exploration has caused "the smallest oil reserves growth in 70 years."
"We’ve been witnessing a massive revocation of investment decisions on projects, which are now considered as economically unviable," he said, adding that "if these trends persist the lack of financing will become chronic and the global excessive production of energy resources will inevitably turn into a deficit and new unpredictable price shocks and will eventually hurt both producers and consumers."
In this respect, Russia welcomes the decision to freeze or reduce crude production, Putin said, adding that particular agreements reached in this sector with OPEC will give "a positive signal to markets and investors" and "will help subdue speculative activity and avoid new price fluctuations."
The Russian leader noted that there are no real grounds so far to say that the hydrocarbons era is close to its end.
"Many people start saying in conditions of the oil prices drop by almost twofold that the hydrocarbons era is approaching its end and time has already come to completely change the focus to alternative energy sources. I believe no real grounds are in place so far to make such far-reaching conclusions, at least for the time being," Putin said. Hmmm.....As i said before 2017 will see higher Oil prices, 2018 prices will depends on which US pres is elected. Read the full story here.