Oil Production Freezing Will Not Result In Expected Rise Of Oil Price

Oil Production Freezing Will Not Result In Expected Rise Of Oil PriceAccording to Anton Siluanov, Minister of Finance of Russia, oil production freezing will not result in the expected growth of oil prices, reports the TASS news agency.

“Even in case of a successful bargain on the oil production freeing, rise in oil prices will have just temporary effect, which will spur the oil manufacturers to boost oil production,” the opinion of the Russian Minister has been reported in the interview to a foreign TV channel.

“Oil production freezing by several states will not bring about the anticipated effect. There is a probability of production growth of shale oil, in this case the prices will go down again,” he said.

In his words, Russia will stimulate oil production under conditions of low oil prices with tax privileges.
“For the production stimulation under the condition of low prices Russia will offer tax privileges for the companies for development of oil field and increase of productivity at the oil fields,” said the Minister.

World oil prices have decreased after the trades held on Friday at the leading oil stock exchanges. The data were reported by the sites of London and New York crude stock exchanges.
The average price of oil futures made $45.89 (-1.76) /barrel at InterContinental Exchange (ICE).
The average oil price at New York Mercantile Exchange made $44.48 (-1.84) /barrel per contract on Light Sweet Crude Oil.