- Title: Putin says extending oil output cuts will deliver stable oil prices
- Date: 15th May 2017
- Summary: MOSCOW, RUSSIA (MAY 15, 2017) (REUTERS) SBERBANK CIB ANALYST, MIKHAIL SHEIBE, SPEAKING TO JOURNALIST PENCILS ON TABLE (SOUNDBITE) (Russian) SBERBANK CIB ANALYST, MIKHAIL SHEIBE, SAYING: "For the world markets and stock prices this move is very positive news - the statement by the Saudi Arabia oil minister and the energy minister of the Russian Federation. In fact they have changed the market volatility today. Today it also had impact on the prices, today oil prices increased over one (U.S.) dollar per barrel and they continue growing. Globally it will also affect the expectations of the investors for the positive. The investors were waiting for the good signals." PICTURE OF MOSCOW CITY (SOUNDBITE) (English) SBERBANK CIB ANALYST, MIKHAIL SHEIBE, SAYING: "In addition, given the 1.8 million barrels per day off OPEC and non-OPEC cuts, I mean these numbers, these values they will outpace even the most optimistic predictions of the rise in U.S. production this year. This again will inevitably lead to the drew down in the global inventories and the subsequent pick-up in crude prices." VARIOUS OF KREMLIN
- Embargoed: 29th May 2017 18:18
- Keywords: oil output oil prices OPEC Saudi Arabia Russia
- Location: VARIOUS LOCATIONS
- City: VARIOUS LOCATIONS
- Country: Various
- Topics: Economic Events
- Reuters ID: LVA0026GYAOG7
- Aspect Ratio: 16:9
- Story Text: Russian President Vladimir Putin said on Monday (May 15) that extending oil output cuts for further nine months would ensure stable oil prices.
Putin, speaking in Beijing, said extending the output cuts was the right thing to do.
"I have met with the heads of the companies ... and we support the proposal," said Putin, who said it was right that Russia was choosing how to approach the issue itself.
He was speaking after Saudi Arabia and Russia, the world's two top oil producers, agreed on Monday on the need to extend the cuts for a further nine months until March 2018 to rein in a global crude glut, pushing up prices.
Russia and Saudi Arabia heavily depend on oil revenues. Last year they agreed the first joint output cuts in 15 years despite major political differences, including their support for opposite sides in the Syrian war.
Saudi, the de facto leader of OPEC, and Russia, the world's biggest producer, together control a fifth of global supplies. Their latest joint action was spurred by oil prices dropping to under $50 per barrel, below their budget needs.
Under the current agreement that started on Jan. 1, the 13-country OPEC and other producers pledged to cut output by almost 1.8 million barrels per day in the first half of the year.
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