Russia is committed to continuing its cooperation with OPEC, and is satisfied with current oil prices of around $70/b, President Vladimir Putin said Thursday.
“It is obvious that we need to cooperate with Saudi Arabia, and we are going to cooperate with Saudi Arabia. OPEC plus has been very positive, and we see that in the market situation,” Putin told reporters in Singapore during a briefing broadcast on Russia 24.
“I’m not going to say anything about whether or not we need to limit oil production, we have to be very careful, as every word impacts the state budget,” Putin said.
Russia is the key non-OPEC participant in the production cut deal with OPEC that has been in force since the beginning of 2017. Participants in the deal will meet in early December to discuss amendments to the deal, which may include a cut in output targets and a move away from using October 2016 production to more recent data as a baseline to measure compliance.
Putin added that he also discussed the oil market situation with US President Donald Trump when the two took part in events to commemorate the end of World War I in Paris at the weekend. Putin and Trump are set to have more in-depth talks on the sidelines of the G20 meeting in Buenos Aires on November 30. Saudi Arabia’s King Salman bin Abdulaziz may also take part in the G20.
Despite growing concerns about price volatility, Putin said Russia is satisfied with current prices.
“What we are seeing now, or quite recently, a price of around $70/b is quite satisfactory to us, if we take into account that as you know our budget is based on $40/b,” Putin said.
Putin is in Singapore for bilateral meetings with Asian leaders and to take part in the Russia-ASEAN dialog and East Asian Summit. In recent days the Russian delegation, which also includes energy minister Alexander Novak has held bilateral meetings with Chinese, Japanese, South Korean and Indonesian officials.
Developing energy cooperation with Asia is a priority for Russia, which is seeking to diversify its customer base and sources of investment in upstream and infrastructure projects. Risks associated with Western sanctions have further stimulated this cooperation.
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