RUSSIA-OPEC/PRICES Russia sees impact from Iran deal on oil market, OPEC expects oil price to stabilise

Record ID: 145629

  • Title: RUSSIA-OPEC/PRICES Russia sees impact from Iran deal on oil market, OPEC expects oil price to stabilise
  • Date: 30th July 2015
  • Summary: MOSCOW, RUSSIA (JULY 30, 2015) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** RUSSIAN ENERGY MINISTER ALEXANDER NOVAK SHAKING HANDS WITH OPEC SECRETARY GENERAL ABDULLAH AL-BADRI CAMERA OPERATORS TALKS IN PROGRESS BADRI LISTENING NOVAK SPEAKING SIGN READING (English): "RUSSIA-OPEC ENERGY DIALOGUE 4TH MEETING" DELEGATIONS TAKING SEATS FOR TALKS OPEC DELEGATION RUSSIAN DE
  • Embargoed: 14th August 2015 13:00
  • Keywords:
  • Topics: General
  • Reuters ID: LVAF510DKNJIY327743Y4DAU25U7
  • Aspect Ratio: 16:9
  • Story Text: OPEC expects oil prices to stabilise next year and to remain so over the long term, Secretary General Abdullah al-Badri said during a visit to Moscow on Thursday (July 30).
    "Both Russia and OPEC have been impacted by the market instability and the price fluctuality that we have seen in recent quarters. This includes the general market oversupply with rising oil stocks and the environment of global economic uncertainty, and of course the lower price environment," Badri said.
    "So the current situation is a test for all producers and investors. While the prices with no doubt will rebound, it is still too early to say when this will happen," he added.
    Badri said the market will stabilise soon but did not name a price he thought would be a new level.
    "We see signs of a more balanced market by the end of this year. And in 2016 we thus expect the continuity and stability in the oil market in the long term," Badri said.
    Russian Energy Minister Alexander Novak told the OPEC chief that Russia and OPEC are pursuing the same goals of keeping the oil market balanced and stable.
    OPEC decided in June to keep oil production unchanged in a bid to defend its market share. Russia has also refused to take any action to support oil prices which have more than halved since last year.
    "The global oil market is impacted by various political factors. In particular, we can say with all confidence that reaching an agreement between Iran and the six major international powers, as well as its consequences such as lifting the sanctions, will have its impact on the market," Novak said.
    "Therefore, we, Russia and the OPEC member states, as responsible players on the global oil market, should follow our own policy based on a full and adequate understanding of the market's main factors and characteristics. We are pursuing common goals here," he added.
    Brent was trading at $53.7 per barrel on Thursday, down from around $106 a year ago.
    Earlier, Novak said Moscow had no plans to discuss oil production cuts with OPEC, saying an oil price of between $50 to $65 per barrel was "expected".
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