Russia satisfied with current oil prices: Novak

By Murat Temizer & Emre Gurkan Abay

MOSCOW

Russia is satisfied with current oil prices and with the progressive balancing of the market, Alexander Novak, Russia's energy minister said Thursday.

At the Russian Energy Week forum in Moscow, Novak said Russia is implementing oil production cuts as agreed with OPEC and non-OPEC countries, and are achieving the objectives that they set.

"Today we see the market is in balance and we are seeing a return on investment in the industry," Novak said.

Novak reminded that 24 countries are participating in the oil production cut agreement, and added that other countries are welcome to participate.

With Russia's 100 percent commitment to the oil cut deal, and through a team effort, the oil industry can recover and the market can be made secure, he said.

He further said that Russia is satisfied with the current level of oil prices. However, he warned that pricing volatility can affect future investments and declared that it is important to minimize this volatility for a stable future.

"The oil market is balancing step by step, Russia is achieving its goals in agreement with OPEC. Countries understand that participation in such a deal is promising from the point of view of market balancing," he said.

Crude oil prices are expected to remain below $60 per barrel in the long term, the global rating agency Fitch Ratings said Monday.

Fitch forecasts global benchmark Brent crude to average $52.50 per barrel in the fourth quarter of this year and for next year, and $55 a barrel in 2019.