MOSCOW: The OPEC+ oil production limiting deal made possible to stabilize the market but it is reasonable to review its extension closer to March 2018, Russian Minister of Economic Development Maxim Oreshkin told reporters on Thursday. “This deal stabilized the oil market, which is highly important. The issue of extension will be resolved. As it was announced earlier, countries will communicate with each other. <…> The deal was definitely positive; its fate will depend on the market review closer to the relevant date,” Oreshkin said.
The OPEC+ agreement contributed to market stabilization, despite the increase in oil production by Libya, Nigeria and the United States, the minister said. “We see oil prices volatility largely gone and the latest dynamics indicates that prices rose and settled at the level above $50 per barrel,” he added. “New drillings volume started declining in the United States and this trend is gradually exhausting,” Oreshkin said. The global demand is growing at the same time and “the market is therefore stabilizing, and that decision [OPEC+ deal – TASS] definitely helped to increase market stability,” he added.
