Oil prices up af­ter Putin freeze call

The Myanmar Times - - International Business -

OIL fu­tures rose fol­low­ing re­marks from Rus­sian Pres­i­dent Vladimir Putin, who said he be­lieved Rus­sia and other pro­duc­ing na­tions should freeze out­put to sta­bilise long-suf­fer­ing oil prices.

The state­ments ran counter to views at­trib­uted the day be­fore to Rus­sia’s oil min­is­ter which ap­peared to cast doubt on the need for any pro­duc­tion freeze.

Mr Putin and Alexan­der No­vak, the en­ergy min­is­ter, were also quoted as say­ing that Rus­sian pro­duc­tion would in­crease this year.

The Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries is sched­uled to con­vene late this month in Al­ge­ria and oil prices have fluc­tu­ated on spec­u­la­tion that the car­tel could agree to limit sup­ply.

In an in­ter­view with Bloomberg, Mr Putin said he be­lieved Rus­sia and OPEC, which to­gether pro­duce half the world’s oil, should agree to freeze pro­duc­tion and that any dis­agree­ment with Iran over the is­sue could be over­come.

Iran has pledged to in­crease its pro­duc­tion to pre-sanc­tions lev­els of 4 mil­lion bar­rels per day.

“From the view­point of eco­nomic sense and logic, then it would be cor­rect to find some sort of com­pro­mise,” Mr Putin told Bloomberg. “I am con­fi­dent that every­one un­der­stands that.”

Ef­forts to reach a sim­i­lar agree­ment col­lapsed in April when top pro­ducer Saudi Ara­bia balked at Iran’s in­sis­tence on re­turn­ing to prior out­put lev­els. –

Photo: AFP

Vladimir Putin wants oil-pro­duc­ing na­tions to freeze out­put.

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