Putin refuses to believe in coordinated reduction of oil prices

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neft-ashagiRussian President Vladimir Putin said during the direct dialogue with the Russian citizens that probability of coordinated reduction of prices at the world market to exert pressure on Russia is hardly possible. He said only Saudi Arabia, the biggest world exporter, could do that, but this will be contrary to its interests.

Putin added that budget of the Saudi Arabia is based on the oil price of $85.00-90.00 per barrel, so reduction of prices below that level will create serious problems for this country. However, these prices are acceptable for Russia.

Russian President also said that decline of oil prices is also unacceptable for the remaining big players of the market. He mentioned the OPEC member-states and US, which has been developing shale oil and gas development recently. Putin added that cheap oil could destroy this industry, because cost price of production here is high.

Saudi Arabia, just like Russia, is among the biggest world oil makers. According to various estimates, its production varies between 9.5 and 10.5 million barrels a day. Saudi Arabia’s stand-by capacity totals between 1.5 and 2 million barrels a day, reported http://lenta.ru.

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