Output freeze by OPEC, Russia to stabilize oil prices
The agreement between Russia and a number of OPEC countries on freezing the oil output will lead to the price freeze, but won’t affect its growth, Alexander Razuvayev, an economist and director of the analytical department at Russian company Alpari, told Trend Feb. 22.
The level at which the sides have agreed to freeze the output, is close to the maximum, said the expert.
“If they reduced the quotas by at least five percent, it could positively affect the price rise,” said Razuvayev.
Currently, OPEC and non-OPEC countries are discussing the possible output freeze for stabilizing the situation on the oil market.
Russia, Saudi Arabia, Qatar and Venezuela have agreed to freeze the oil production at the January levels, if the others follow the suit. Later, Venezuela’s oil minister said that Ecuador, Algeria, Nigeria and Oman supported this proposal.
Kuwait also expressed readiness to join this initiative.
The oil production in Saudi Arabia – OPEC’s largest oil producer and exporter – totaled 10.23 million barrels per day as of January, said the cartel. This is while the oil output in Russia reached new record (10.91 million barrels per day) in December 2015.
Razuvayev also predicted that the oil production will decrease in the US and other projects will be frozen due to the current situation on the market.
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