Russian minister says oil market to reach balance in 2017

MOSCOW, Sep 26 (PRIME) -- Oil market supply and demand can come into balance already in the second half of 2017 with market methods even if no agreements on the market stabilization are reached at the upcoming meeting in Algeria, Russian Energy Minister Alexander Novak told reporters on September 25.

“Everything will depend on demand, supply, on the economic situation of many countries that consume oil. All this has to be analyzed. Under my estimate, demand will restore next year,” he said.

“I think that we will see balance of supply and demand already in the second half of (next) year,” Novak said.

OPEC members plan to hold an informal meeting during the International Energy Forum in Algeria on Monday–Wednesday to resume talks over oil output freeze.

A failure to reach an agreement on oil production freeze will not be crucial for Russia, Novak said.

Russia has not received any proposals from oil producing countries to cut its output in order to balance the market, but is ready to discuss all proposals at the upcoming meeting, he also said.

Algerian Energy Minister Noureddine Bouterfa expects that oil producing countries will agree to freeze or cut oil production at the upcoming meeting.

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