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Russia Finds $45-$50 Oil 'Acceptable From The Point Of View Of Market Balance'

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Russia Finds $45-$50 Oil 'Acceptable From The Point Of View Of Market Balance'

The Russian government said $45 to $50 per barrel is an acceptable price for the oil market to balance itself, according to a report by Reuters.

The Russian government, along with other major oil producing nations, are set to meet in Doha on April 17 to discuss a potential freeze on oil output. However, there remain doubts that such an agreement could be made as Saudi Arabia has already stated it will only freeze output if Iran agrees to do the same.

Even if a deal were to be made in Doha, there are still major question marks involved, including timing.

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"Now there is discussion of how long production will be frozen and ways to monitor the agreement," a source told Reuters. "The level of $45-50 (per barrel) is acceptable from the point of view of market balance: if prices go higher shale oil production could start to recover."

The source also suggested that a freeze in oil production without a commitment from Iran could also be on the table.

"A freeze without Iran is being discussed. At the moment we don't see tough conditions (from others) for Iran to join," one of the sources said.

Reuters noted that a Russian Energy Ministry spokeswoman confirmed that the source's information and commentary was correct.

 

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