Minister: Russia sees no strong oil price fall as Iran reaches mkt

MOSCOW, Jul 17 (PRIME) -- Global oil prices will not react strongly to a comeback of Iran to the market, Russian Energy Minister Alexander Novak told reporters Friday.

“I think that there will be no strong influence now already. The market has long ago evaluated this and swallowed this,” Novak said.

Market prices will largely depend on the prime cost of shale oil development, he said. The fair oil price will stand at U.S. $50–65 per barrel, he said.

Russia will discuss the oil markets situation with OPEC on July 30. “The basic issue, it is discussed at every meeting, is the situation on the oil market from the point of view of the production amount, sales, output. This includes repeal of sanctions from Iran,” Novak said.

Novak said that Russia and Saudi Arabia share an opinion that there is no need for forced oil output cuts.

The Energy Ministry plans to discuss Russian companies’ participation in oil and gas projects in Iran soon, Novak said.

The next meeting of the Russia–Iran commission for trade partnership is expected to be held in September–November.

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