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Sberbank head says decision to reduce oil output will balance global economy

December 13, 2016, 18:08 UTC+3 MOSCOW

CEO of Sberbank Herman Gref noted that control over the implementation of the agreement is one of the key aspects

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MOSCOW, December 13. /TASS/. The decision of OPEC and non-OPEC countries to reduce oil production in the short term will balance the whole macroeconomy, CEO of Sberbank Herman Gref said at a press conference following the meeting of the Supervisory Board.

"The decision has already made an impact, there has been a jump in prices. In the short term this is a very positive aspect, which will balance the whole macroeconomy. In the long term it is difficult to predict. It is clear that not all countries will join the cartel, in particular the US is increasing oil supply capacity," Gref said.

He did not rule out that there will be "shares exchange" on the oil market.

"Those who do not enter into these agreements will increase their market share, as it always happens. That is why it will be possible to evaluate the strength of this alliance in six months," Gref said.

He added that control over the implementation of the agreement is one of the key aspects. "There has always been a big problem with it there is no mechanism of control over the implementation. Today, this is a more deliberate move on behalf of all participants. Let’s hope that self-control over the execution of the obligations will work. In general, I think in six months it will be possible to say how it works," the head of Sberbank said.

On November 30, OPEC countries agreed to cut oil production to 32.5 mln barrels per day. Right since then Brent crude price has surged by 20%.

On December 10, non-OPEC member-countries agreed to cut oil output by 558,000 bpd. Thus the total cut oil output with OPEC members comes to 1.7-1.8 bpd. As a result of that agreement Brent crude price leapt by 6% to $57.89 per barrel.

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