Russian Energy Minister Sergei Shmatko believes that global oil production will fall if prices remain at the current level, as he told journalists today according to RBC. Virtually all OPEC members, with the exception of only Saudi Arabia, are outraged at the current price levels on global oil markets, the minister said. This is not the position of "a dog in the manger," Shmatko stressed, but a situation when production profitability is close to zero for OPEC. He expressed his opinion that the fair market price was above $60 per barrel of oil. Unless market conditions change in the mid-term, Shmatko pointed out, a reduction in global oil output is very likely. Russia is concerned over the matter, he added, and it is analyzing factors determining the market situation.
Fall in global oil output possible, energy minister says
The minister also noted that he held talks with OPEC Secretary General Abdalla el-Badri on November 18. He reiterated that their next meeting was scheduled for December, although it could be moved earlier if the need arose.