06:41 GMT08 August 2020
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    Oil in Turmoil (134)
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    The average oil price may climb to $60 a barrel if an agreement is reached on freezing extractions, Russian Energy Minister Alexander Novak said Tuesday.

    MOSCOW (Sputnik) – The Organization of the Petroleum Exporting Countries (OPEC) members and non-OPEC oil producers are expected to discuss freezing oil output to curb oversupplies on Sunday, April 17 in Doha.

    A number of analysts foresee the anticipated freeze to act more as a symbolic step, while others see long-term market stabilization in the move.

    “If we go along the market path, then this would be in the second half of 2017. If we agree [on an extraction freeze],…then we’ll shorten this imbalance in 3-6 months. That is we’ll be able to rebalance at the beginning of 2017, and then the prices might be between $40 and $60, with an average of around $50,” Novak said.

    In February, the energy ministers of Saudi Arabia, Qatar, Venezuela, and Russia discussed the current oil market situation in Doha and agreed to freeze oil production at January levels if other countries followed suit, in a bid to keep the oil prices from falling further.

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    Oil in Turmoil (134)

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