Russian Deputy Prime Minister Alexander Novak said after the OPEC+ meeting that setting a price ceiling for Russian oil would harm the energy market, widen the deficit and drive up prices.
“Such decisions will greatly harm the energy market and will only lead to an increase in the deficit and higher prices,” Novak said, answering a question about the introduction of a ceiling on Russian oil prices.
He added: “We believe that it is not recommended to supply oil to consumers who intend to apply a price ceiling. Russia will supply to consumers who guarantee market prices.”
Novak said Russia’s oil production currently stands at 9.9 million barrels per day, adding: “There is still a possible limit for our oil industry to increase production.”
He stressed that the Russian budget proceeded from the price of oil at $70 per barrel, which is an acceptable price for us.
In an interview with the Russia 24 channel, he said: “Our budget is formed at a price of $70 per barrel, and we believe that this is a comfortable price that can be taken as a basis today.”
He called unprecedented the decision of OPEC + to cut oil production in November by two million barrels per day at once, stressing that such decisions are related to the need to balance the market before winter.
The Deputy Prime Minister stressed that Russia is ready to pump gas through the undamaged branch of the Nord Stream 2 gas pipeline.
Novak called for the participation of Russian experts in the investigation of the gas leak from the Nord Stream lines in order to allow the operators, Gazprom and Rostekhnadzor, to determine the damage and make appropriate decisions.
Source: RIA Novosti