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2008 September 10   10:41

Russia wants fair oil price on world market - minister

The oil price on the world market should be  fair  and  should take into account not only the interests of consumers  but also significant growth in the oil companies' spending of late, Russian Energy Minister Sergei Shmatko told journalists before the opening of an OPEC Conference meeting in Vienna on Tuesday, Interfax reports.

""We  have  to  invest  significant  money  in  new  infrastructure projects and the development of new fields," said Shmatko, a member of a Russian  delegation  led  by Deputy Prime Minister Igor Sechin, which is attending the meeting as an observer.

"A  decline  in  oil  prices  could  lead  to  the  decline  in the companies'  investment  appeal  in  terms  of the development of the oil production infrastructure. This will inevitably affect the oil market in the future and will again lead to growth in prices," he said.

Russia  wants  "a  healthy  balance"  in  oil  prices,  which  have stabilized at over $100 per barrel in the past several months, he said.

Touching  on  prospects  of  closer  ties  between  Russian  energy companies  and OPEC, Shmatko pointed out that Russia has interacted with this organization  as  an observer over the past 10 years and intends to maintain more intensive dialogue with it in the future.

"We  had negotiations with the OPEC secretary general today, and he acknowledged that there is some discomfort about the price trends on the oil market.  We have great potential of joint work, and we have a lot in common with  OPEC, including from the viewpoint of attaining some common ends related,  in  particular,  to  the  improvement  of  the quality of analysis  and forecasts on the oil market and understanding of trends in the development of the situation," he said.    

"Russia  and  OPEC are interested in clear, transparent, long-term, and stable relations on the oil market," he said.

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