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October 22, 2019

Russian minister assured that growth in oil price is the result of the OPEC+ quota deal

NovakThe extension of the OPEC+ quota deal has positively influenced the dynamics of crude oil prices on the world markets, revealed the Russian energy minister Alexander Novak. In recent weeks, the price of oil on world markets has reached a level of about 70 USD per barrel. This is the highest level for the past three years.

The OPEC countries, as well as several external countries, among them Russia, agreed in November 2017 to extend the limited oil quotas by the end of 2018. Meanwhile, the market is also affected by data on reduced fuel reserves in the United States and unexpected stops of several pipelines during the end of the year.

“The market sees successful efforts and reacts”, said Russian energy minister Alexander Novak, quoted by the press center of the Russian Ministry of Energy.

Under the agreement, the most significant reduction in yield is foreseen for Saudi Arabia (486,000 barrels per day) and Russia (300,000 barrels per day). The total reduction is 1.8 million barrels per day.

Later, a meeting of OPEC ministers was held today in Oman, assessed the results of the quota deal and confirmed the readiness of the all parties to keep the deal until its expiration date. All the participants agreed that significant success was achieved in stabilizing of the oil market and eliminate the excess of oil reserves. This stabilized the price and helped to growth of commodity markets.

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