Published: Tue, June 11, 2019
Economy | By

Oil steadies above $62 as OPEC cuts counter growth concerns

Oil steadies above $62 as OPEC cuts counter growth concerns

Novak was speaking at a joint briefing with Saudi Energy Minister Khalid al-Falih, who was in Russian Federation for meetings with Novak and Vladimir Putin, weeks before OPEC and its Russia-led partners are set to decide how to proceed with their oil market management policies in place since 2017.

Even Hedge Funds have increased selling of Oil considering the global scenario and the overextended Bull Run in prices over the supply cuts by OPEC. "I will wait for them to work it out", he said. There is a debate within Russian Federation about the exact volume it should be producing in the second half, he added.

President Vladimir Putin said last week that Russian Federation and the Organization of the Petroleum Exporting Countries disagreed over what constituted a fair oil price, but that they would decide at the meeting.

Earlier, Russian Finance Minister Anton Siluanov said that the price of oil could drop to $30 a barrel if OPEC and its partners fail to agree on extending the production cuts that now expire at the end of June.

Al-Falih said he may have another opportunity to talk to Novak at a G20 meeting in Japan beforehand.

Russian President Vladimir Putin said last week that there were disagreements on the issue, with Moscow - which is also a major gas producer - in a better position to weather lower oil prices.

"This is not ruled out".

The energy ministers of both countries have been at pains to stress a common view on the crude market, saying Friday they'll continue to cooperate once production curbs expire, though Russian Federation is yet to commit to an extension of the deal as it weighs demands from its oil companies.

"Indeed, there are big risks of over-production".

"We need to continue to monitor the situation and see what happens in June so we can take a balanced decision in July", says Energy Minister Novak.

Al-Falih said the OPEC+ group was working to take "preventive" measures to avoid sharp oil price declines.

While Russia may be happier with a lower oil price than Saudi Arabia, the OPEC+ accord has boosted its federal budget amid higher prices for energy commodities.

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