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Russian energy Minister Alexander Novak

© Alexander Shcherbak/TASS

MOSCOW, July 13. /TASS/. Russia expects the effect of the transaction OPEC+ at 2.5 trillion rubles in 2018, said Minister of energy of Russia Alexander Novak.

“Price down to $70 [per barrel] this effect will be 2,5 trillion”, – said Novak.

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He also noted that Russia in July, resumed oil production on 80% of the reduction that was provided for in the agreement OPEC+. “We follow the decision [to increase production] in July for two-thirds or even about 80% restored cuts, which was” – said the Minister.

“You know, in June we went on a reduction of 300 thousand and 180 thousand [barrels per day]. As for July, it is too early to talk about those indicators that would in a whole month, but we believe that the overall reduction will be approximately 200 thousand from the limit, which was. From October 2016 there will be about 100 thousand,” – said Novak.

“We for our companies introduced proportional allocation of quota, they all adhere to the General arrangements of the proportional change in production,” he said.

The OPEC deal+ to limit oil production continues despite a decision on the restoration of the total production of 1 million barrels a day, said Novak. To the question whether he considers that the transaction is “collapsed”, the Minister said: “We do not think so”. “I do not exclude that if [the market] need more than 1 million barrels of probation, we [the member countries of the OPEC deal+] so that we can quickly discuss it and make the necessary decision. But it depends, appropriate or not,” noted Novak. However, he noted that, “it may be disproportionate quota allocations [amounts] to increase by 1 million, based on the capabilities of different countries”.

On the question whether there is a risk of a split in the Alliance, given the position of Iran, Novak said it was “fancy”.

According to him, OPEC+ will be able to make decisions on the regulation of the oil market after 2018. “For the continuation of this work [on regulation after 2018], we will look into this feasibility. Such a mechanism was shown to be effective. Countries want to continue to interact, make decisions on extraction in case of need,” he said.

“But the base has been considering the draft agreement, since 2019 about the institutionalization of the relations. This agreement will be of indefinite duration. We will have the opportunity, exporting countries, to consult, to meet and to make decisions that will be useful for the member countries,” added Novak.