New Oil Cuts Deal to Reduce Short-Term Price Volatility - Russian Economy Minister

MOSCOW (Pakistan Point News / Sputnik - 08th December, 2018) : The Russian Economic Development Ministry's forecast that the annual average global oil price would make $63 per barrel in 2019 is relevant to the current situation and it takes into consideration the OPEC-non-OPEC decision on oil cuts, Russian Economic Development Minister Maxim Oreshkin told reporters on Saturday.

Oreshkin said that the OPEC-non-OPEC decision would promote reduction of oil prices' short-term volatility, but would not affect their long-term stability.

"Our forecast for the next year is $63 per barrel, and I think it is absolutely relevant to the current situation in the global market, and it also takes into consideration the decision taken in Vienna this week," Oreshkin said.

He added that the OPEC-non-OPEC decision was important in the context of oil market long-term stability.

"I don't think it will have any global long-term effect on the prices, this is more likely a matter of prices' short-term volatility reduction," Oreshkin said.

The OPEC states and non-cartel members have agreed to reduce overall oil production by 1.2 million barrels per day starting next year, with a view to signing the charter on future long-term cooperation in the first quarter of 2019.