Russia is ready for an oil deal: Deputy prime minister
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Written by: Katy Barnato | Julia Chatterley
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Russia is ready to strike a deal to help boost global oil prices, the country’s deputy prime minister told CNBC.
Major oil-producing countries will meet in Algiers this month to discuss market conditions. OPEC member countries, plus Russia, are expected to hold discussion on the sidelines about the possibility of an output freeze to boost prices.
Hopes of a deal have fallen through in the past, in particular because Saudi Arabia — OPEC‘s de facto leader — remains wedded to keeping output high to hold market share.
However, Dvorkovich suggested that with oil prices till low, Saudi Arabia may yet change its mind.
“Any producing country is not good with a very low oil price,” he told CNBC.
He said that a good price for crude was between $50 and $70 per barrel.
WTI crude futures for October traded at around $43.35 a barrel on Friday.
“We prefer a stable price,” Dvorkovich told CNBC.
Low oil prices have harmed Russia’s economy. Russian Economy Minister Alexei Ulyukayev cut his forecast for economic growth on Friday, predicting the economy would shrink by 0.5 percent-0.6 percent in 2016, according to Russian news agency Interfax.
However, the economy is seen returning to growth in 2017.