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Russia’s oil export will go up by 3.3% in 2016 — energy minister

Russia’s oil production grew by 5 mln tonnes year-on-year in five months of 2016, production volume growth is 2.3%

ST. PETERSBURG, June 16. /TASS/. Oil exports from Russia will increase by 3.3% to 252 mln tonnes in 2016, the country’s Energy Minister Alexander Novak told TASS Thursday, adding that growth is also expected in 2017.

"Export will be growing by around 3.3% to 252 mln tonnes. Next year will also see growth though I cannot give you details," he said.

According to the minister, world’s oil surplus production remains about 1.5 mln barrels per day while the annual average oil price in 2017 is expected to be around $50 per barrel.

"The surplus production still remains about 1.5 mln barrels daily," the minister said.

"In my opinion, in 2016 the price may be balanced between $40-50. As for the 2017 outlook, the average price will be about $50, may be somewhat higher. A lot depends on financial factors, the U.S. Federal Reserve position on the refinancing rate. We understand that the price of oil is highly dependent on the dollar’s position in the basket of currencies," he said.

Russia’s oil production grew by 5 mln tonnes year-on-year in five months of 2016, Novak said. "Production volume growth is 2.3%," he added.

The official has also stressed that Russia has to continue cooperation with OPEC despite disagreements inside the organization.

"One cannot count out such an organization today. It’s clear that there are certain disagreements inside OPEC between different groups," he said in an interview aired by RBC business news TV channel at the St. Petersburg International Economic Forum (SPIEF-2016), adding that Russia "has to continue constructive relations with the organization."

In the first quarter of this year Russia boosted crude exports by 4.4% year-on-year to 62 mln tonnes, according to the data provided by Rosstat.

First Deputy Energy Minister Aleksey Texler said earlier Russia’s oil exports would increase by 2-3 mln tonnes each year in 2015-2018.

Transneft, Russia’s pipeline monopoly, expects crude exports from Russia to total 210 mln tonnes in 2016, according to the company’s First Vice President Maksim Grishanin.