04:29 GMT26 July 2021
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    Moscow Research Center for Post-Industrial Studies Director Vladislav Inozemtsev claims that the agreement between Russia and Saudi Arabia reached last week to freeze oil production at January levels will likely create temporary price stabilization at above $30 per barrel.

    WASHINGTON (Sputnik) — The agreement between Russia and Saudi Arabia reached last week to freeze oil production at January levels will likely create temporary price stabilization at above $30 per barrel, Moscow Research Center for Post-Industrial Studies Director Vladislav Inozemtsev told Sputnik on Monday.

    "I believe we are in a new plateau which may last for several months, just off this bargain," Inozemtsev said of the Russia-Saudi oil freeze.

    Depending on how the deal is implemented, he anticipates "quite stable oil prices at a little bit above $30 [per barrel] for maybe two to three months."

    On February 16, the energy ministers of Russia, Saudi Arabia, Venezuela and Qatar agreed to level off average monthly oil output at January levels, in response to persistent low prices.

    The oversupply of oil on the world market, and declining economic growth among top consumers has resulted in oil prices reaching their lowest levels since 2004.

    On Monday, the International Energy Agency released its medium-term outlook for oil prices, forecasting a tight market in the near-term, with oil prices rising back up to $80 per barrel by 2020.

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    Tags:
    oil prices, Saudi Arabia, Russia
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