Russia Still Favors Output Freeze Not Cut

October 21, 2016 Share Print 0

Russia will produce 548 million tonnes (11 million barrels per day) of oil next year, a post-Soviet record, however Moscow still wants global producers to curb production amid weak prices, Energy Minister Alexander Novak said on Friday.

Russia, the leading oil producer, expects the Organization of the Petroleum Exporting Countries to find common ground on capping oil production. OPEC is to hold its regular meeting in Vienna on Nov.30.

Before that, Novak will make several trips, including to Saudi Arabia this weekend and to Vienna next week.

He said he would take “some” proposals to a meeting with his Saudi counterpart and he believed an oil output freeze was still necessary.

He declined to provide any further details on the proposals.

Asked about the need for an oil output freeze, he said: “Yes, this is our main position, it has not changed.”

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.