Oil Prices to Rebound Regardless of Russia-OPEC Deal on Cuts

Global oil prices will return to growth whether or not Russia and the OPEC member states agree to introduce production cuts, President of the Colombian Petroleum Association (ACP) Francisco Jose Lloreda told Sputnik.

MOSCOW (Sputnik) — Market prices for benchmark Brent and WTI crude dropped to a 12-year low in mid-January, sliding below the level of $30 a barrel due to oversupply in the market.

"What is not achieved via this way (through Russia-OPEC dialogue), will be achieved with market dynamics, and sooner rather than later there will be a price rebound," Lloreda said.

He added that the decision on universal production cuts would be difficult to make since it would comprise multiple states with different interests and then it would be necessary to come up with a complicated verification procedure to check if all the parties remain committed to the deal.

Russian Energy Minister Alexander Novak said last week that Russia may engage in talks with OPEC members, including possible discussions of OPEC cutting production in light of the saturated energy market.

However, Novak's initiative has not been backed up by OPEC so far, while Saudi Arabia has denied the existence of an agreement among oil producing countries to cut production by 5 percent.