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Oil price growth to $70 per barrel is success of OPEC+ deal - Russian Energy Minister

Energy ministers of Russia and Saudi Arabia discussed prospects of cooperation between both countries

MOSCOW, January 21. /TASS/. Extension of the OPEC+ oil production capping deal positively influenced on the price dynamics in the oil market, Russian Energy Minister Alexander Novak said at the meeting with Energy Minister of Saudi Arabia Khalid Al-Falih.

"The market sees the success of efforts and responds: prices have already reached almost $70 per barrel," the minister noted.

Energy ministers of both countries discussed prospects of cooperation between Russia and Saudi Arabia and multilateral interaction with other countries aimed at the oil markets’ situation rebalancing during talks.

OPEC member-states and non-OPEC oil producing countries reached the agreement on reduction of oil production [the OPEC+ agreement] in late 2016. The agreement obliges the parties to cut production by a total of 1.8 million barrels per day in comparison with the level of October 2016. Under the agreement, Saudi Arabia and Russia have the biggest cutbacks, which are 486,000 barrels per day and 300,000 barrels per day respectively.

The deal was initially valid in the first half of 2017 but since then it was extended twice: first - until the end of March 2018, and then - until the end of 2018. The goal is to remove surplus world oil reserves from the market.

Ministers of OPEC+ deal participants will meet on Sunday in Oman for the first meeting of the monitoring committee in this year.