UPDATE: OPEC raises production quota by 1.5 mln bpd – Bloomberg

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MOSCOW, Dec 4 (PRIME) – OPEC will raise its oil production quota by 1.5 million barrels per day to 31.5 million barrels per day, excluding Indonesia which is to enter the cartel, Bloomberg reported on Friday quoting a participant of the meeting.

Prior to the announcement, the Brent oil price lost 1.46% to U.S. $43.21 per barrel as of 5.02 p.m. Moscow time, according to the ICE exchange.

Mikhail Leontyev, vice president of Russian oil major Rosneft, told PRIME that the decision bears no risks for the company as its cost of production is one of lowest in the world.

“The trend (of the OPEC decision) lies in massive dumping from Saudi Arabia in the first place…It is aggressive pressure on the market,” he said.

“We have repeatedly said that Rosneft as a company is outside the risk zone. It is obvious that it affects our current plans, but our cost of production is one of the lowest in the world among public companies, equaling current costs of the Persian Gulf states,” he said.

He added that Rosneft’s cost of production stands at U.S. $3–4 per barrel and depends on the ruble rate against the U.S. dollar.

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