Russian President Vladimir Putin said at the World Energy Congress in Istanbul on October 10, 2016, that Russia will join the deal to cut global crude output.
Putin said that a freeze and a cap is perhaps the only right thing to do to preserve the stability of global energy. «The demand for traditional energy supported not only the motorization and electrification of such huge countries and economies as China and India, but also by the continuing participation of oil and gas products in the most diverse areas of human life, in industrial processes, » he said.
Last month, Opec countries reached an agreement in Algiers to curb production to between 32.5m and 33m barrels a day. But details for a binding deal to reduce supply, which would be the first since the financial crisis, still need to be finalised. Vladimir Putin said that he hope that OPEC members would confirm the decision to adopt quotas for output when the organization meets in November 2016. «We support OPEC’s recent initiative to cap output and think that at the OPEC meeting in November this idea will materialize in a specific agreement, giving a positive signal to the markets and investors, » Putin said.
The Russian President added that the era of oil and gas will not come to an end in foreseeable future.
Russia would prefer to freeze its output at current levels rather than make reductions, Russian energy Minister Alexander Novak said in Istanbul. Russia has pumped 11.2 million barrels a day of oil in October 2016, beating a post-Soviet record.
Brent crude, the international benchmark, increased as much as $1.4 to $53.5 a barrel after Mr Putin’s remarks.
This is the highest level since October 9 last year.
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