Oil production freeze may contribute to higher oil prices
Baku, Azerbaijan, March 18
By Anakhanum Khidayatova - Trend:
The prices on global oil markets may reach $50-$60 per barrel by early summer 2016 amid oil producing countries' freezing of extraction level, Russian company Alpari's Analytical Department Director Alexander Razuvaev told Trend March 18.
On February 16, Russia, Saudi Arabia, Qatar, and Venezuela held talks on the current oil market situation in the Qatari capital of Doha and agreed to freeze the oil output at Jan.11 level if other countries followed the deal. The proposal was later backed by Ecuador, Algeria, Nigeria, Oman, Kuwait and the UAE.
The OPEC and non-OPEC countries can hold a meeting in mid-April in Doha, Qatar, to discuss the possibility of freezing oil output, according to media reports.
Commenting on the issue of increasing duties on oil by Russia, the expert said that this step is a usual procedure.
The duty on oil export from Russia will increase by $15.4 to $54.9 per ton starting from April 1 (compared to $39.5 per ton in March), according to the ministry of finance of Russia.
The average price for Urals crude oil for the monitoring period from February 15 to March 14, 2016 amounted to $33.38 per barrel, or $243.7 per ton, according to the ministry.
"The increase of duties on oil by Russia is a normal procedure," said Razuvaev. "Duties depend on oil prices, pegging to oil prices is common practice."
He said that this measure won't lead to higher prices for gasoline in Russia.
"This is a simple replenishment of budget," said Razuvaev.