The energy Ministry in the near future expects a recovery in oil prices

© RIA Novosti / Vitaly to Timepiece in fotosannette the machine-rocking. Archival photoThe energy Ministry in the near future expects a recovery in oil prices© RIA Novosti / Vitaly to Timepiece the image Bank

The Ministry of energy sees no tragedy in falling oil prices after the decision of oil producing countries on the extension of the Vienna agreement; expects prices in the short term will recover to recent levels, said in an interview with RIA Novosti the head of Ministry Alexander Novak.

Thursday 24 countries inside and outside OPEC, agreed on the extension of the Vienna agreement to reduce oil production for another three quarters. Reduction of production remained at the same level. The generally positive news disappointed investors counting on more and world oil prices against this background, on Thursday plunged more than 5%.

«First, any variations are possible, the price is within that range that suits us, between 50 and 60 dollars. If the deal isn’t done, you would see a very different drop rates. According to many experts, it would have fallen below $ 30. The surplus would put pressure on the situation. So that it is kept at 50 or above, this is a plus,» said Novak.

«The second — in anticipation of the deal you saw was sufficient growth at a price that is, in principle, the market price laid the decision. So when the deal was finalized, usually many market participants, speculators close out their opportunities, futures sells, it is also one of the factors (influenced the decline in prices – ed.)», — continued the Minister.

«Fundamentally it (the price – ed.) fell. In my opinion, it will recover to the same levels in the short term. All of this is — and a decrease of reserves is ongoing, and the assurance that within 9 months will fall out of the market 1.7 million barrels. Therefore, do not see any tragedy. Plus or minus 1-2 dollar fluctuations — everything is fine and meets the expectations,» said Novak.

OPEC November 30 in Vienna agreed to reduce its total production by its members by 1.2 million barrels a day compared with October levels to stabilize oil prices. Eleven non-OPEC countries, 10 Dec also agreed to reduce its production a total of 558 thousand barrels, including RF — 300 thousand. This agreement was concluded for the first half of 2017 with possibility of extension. Now it was prolonged for another 9 months, until April 1, 2018.