OPEC Oil Prices

Moscow, Riyadh share view on oil prices following lifting of Iran sanctions

The Russian Energy Ministry and OPEC will discuss new technologies in oil extraction and monitoring systems of taxation in other oil producing countries, Russian Energy Minister Alexander Novak said.

MOSCOW (Sputnik) – The Russian Energy Ministry and the Organization of the Petroleum Exporting Countries (OPEC) will discuss world prices on oil in line with the lifting of sanctions against Iran on July 30, Russian Energy Minister Alexander Novak told journalists.

On Tuesday, Tehran and the P5+1 group of international negotiators, including Russia, announced a final comprehensive agreement on the Iranian nuclear program. The treaty will limit Iran’s nuclear program in exchange for the relief of Western sanctions targeting the country’s economy, including against Iranian oil exports.

“The main issue, which is discussed at every meeting, is the situation on the oil market in regard to production volumes, realization, and extraction, taking into consideration the lifting of sanctions against Iran,” Novak said.

He said that the Russian Energy Ministry and OPEC will discuss new technologies in oil extraction and monitoring systems of taxation in other oil producing countries.

“Next time, we would like to offer for discussion, as a second issue, the global situation with oil refining,” Novak added.

He also pointed out that Russia and Saudi Arabia share the same positions on future oil prices and the inexpediency to artificially lower volumes of extraction.

“First of all, we have similar opinions that it’s unnecessary to artificially decrease [oil] extraction, that’s our common stance…The market reacts by itself,” Novak said, adding that both countries also agree on the forecast of future oil prices.

The discussion will be held amid a current global market oversupply that is contributing to diminishing oil prices. OPEC declined to cut its output levels in November 2014, further deepening the slump in prices.

A previous meeting between Novak and OPEC’s Secretary General Abdalla Salem el-Badri took place in September 2014 in the organization’s headquarters in Vienna, Austria.

 

By Sputnik