“I think that the diapason of fluctuations, of which we spoke about before, from $50 to $65 [per barrel] is a normal and expected process and there are no supra-fluctuations that we see. The global situation on the markets depends on supply and demand and in today’s case, this is how it’s unfolding,” Novak said.
Global oil prices decreased more than twofold, dropping from $100 to $45 per barrel for Brent crude in the second half of 2014, due to oversupply.
The Organization of the Petroleum Exporting Countries (OPEC) elected in November 2014 to maintain oil production levels, accelerating the price decline.
In 2015, Brent prices peaked at $69.58 per barrel in early May before decreasing to below $55 in July.
According to the International Energy Agency (IEA), global oil prices will fall further in 2016 in response to decreased demand.
The dates for beginning the construction of the Turkish Stream gas pipeline may be postponed if there is a delay in signing an intergovernmental agreement between Russia and Turkey, Novak said.
“Of course, the dates will move, this would be logical,” Novak told journalists in response to whether the dates for the beginning of construction could be postponed if there is a delay in signing the intergovernmental agreements.
The limitation of oil extraction to hold the global prices steady will not be discussed during the meeting between the heads of Russian Energy Ministry and OPEC scheduled on July 30, Russian Energy Minister said.
“We won’t discuss oil prices. We will discuss the general situation on the global oil and gas markets. Of course, in that context, we will speak about prices,” Novak said to the journalists.
The Russian Energy Ministry and the OPEC will discuss global prices on oil in line with the lifting of sanctions against Iran on July 30.
