Oil market will stabilize by the middle of 2017 when world’s oil balances in storages will reach the 5-year average figure, TASS reported, citing Russian Energy Minister Alexander Novak.
“Rebalancing on condition of full adherence to the production agreement during the first half of 2017 will make possible to reach oil balances at the 5-year average figure. This is the result and the objective to be delivered in order to balance and stabilize the oil market,” Novak said.
He added that members of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries plan to hold two more meetings before the oil production cut agreement expires.
Moreover, Investments into oil sector expected are expected to grow first time in 36 months, the minister said.
Russia reduced oil production in January by more than 117,000 barrels per day under the agreement with OPEC and oil production across countries participating in the agreement was lowered by 1.4 mln barrels per day on the whole.
“Production of Russian companies dropped by 117,000 barrels per day as of January end, more than two times higher than companies planned initially,” Novak said.
Crude oil prices rose in Tuesday session t on signs of compliance with a managed decline deal, UPI reported.
Last year, Russia and members of OPEC members signed a deal to cap production in an effort to balance the market.
The price for Brent crude oil was up 1.1 percent about a half hour before the start of trading in New York to $56.19 per barrel.
West Texas Intermediate, the U.S. benchmark price for oil, was up 1percent to $53.34 per barrel.