Report: Non-prolongation of OPEC deal to affect oil prices

MOSCOW, Sep 7 (PRIME) -- Oil prices may change rapidly and significantly if an oil output reduction agreement of OPEC and non-OPEC states is not prolonged, Finance Minister Anton Siluanov said in an interview to Bloomberg TV broadcast on Thursday.

The OPEC states agreed to reduce production by 1.2 million barrels daily to 32.5 million barrels in November 2016. In December 2016, 11 non-OPEC countries including Russia agreed to cut their combined output by 558,000 barrels. The agreement was concluded for January–June and prolonged for nine more months in May.

“If the oil production reduction agreement is not prolonged, oil prices are most likely to change rather rapidly…We expect that the topic of prolongation of the deal will be discussed,” Siluanov said.

“We hope that we will be able to find a common ground further between OPEC and Russia from the point of view of common pricing policy.”

He also said that the ministry does not expect any significant changes in the ruble rate if external conditions persist.

“The oil price dynamics influence our payment balance, our current account, and this has its influence on the ruble’s rate against other currencies. But connection between oil prices and changes in the rate of the ruble will be different than two or three years ago,” he said.

“It is obvious that changes in external economic formats and decisions may have an impact on situation with the rate of the national currency. But I will say once again that we expect no significant changes in dynamics of the (ruble) rate,” he said.

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