Speculation, Not Economy Behind Low Oil Prices: Russian Lawmaker

The lawmaker also urged not to panic in light of OPEC's decision, pointing out that "the Russian budget still runs a surplus."

MOSCOW, November 28 (Sputnik) — Politics and speculation, as opposed to economic reasons, account for the current low price of oil, a lawmaker from the State Duma, Russia's lower house of parliament, said Friday at a roundtable held at the Rossiya Segodnya press center.

"The decline of oil prices was not economic in nature, but rather political and speculative," Energy Committee chair Ivan Grachev said at a roundtable on the Organization of the Petroleum Exporting Countries' (OPEC) decision to maintain current oil output levels.

The lawmaker urged not to panic in light of OPEC's decision, saying, "We should not forget that the Russian budget still runs a surplus."

On Thursday OPEC Conference president and Libyan Vice Prime Minister Abdourhman Ataher Al-Ahirish also highlighted the role speculative activity is playing in the oil markets during opening remarks of the group's 166th meeting.

At Thursday's meeting in Vienna, the 12-member cartel decided to keep the current daily oil production ceiling of 30 million barrels, immediately causing the price of Brent crude to fall below the benchmark level of $75 per barrel.

The decision was made amid a slump in oil prices on the global market. Over the past five months oil prices have fallen by about $40 per barrel.