Russia and Venezuela to discuss oil prices in Vienna today

Russian Energy Minister Alexander Novak, Rosneft Head Igor Sechin and Venezuelan Foreign Minister Raphael Ramirez are attending Russian-Venezuelan talks on oil prices in Vienna today. They will discuss Russia’s proposal to lower oil extraction with OPEC states. Russia offers to reduce oil extraction by 15 million tons simultaneously with reduction of its extraction in OPEC countries by 70 million tons. Raphael Ramirez proposed the same idea during a visit to Russia.

Vyacheslav Kulagin, the director of the Center for Studies of World Energy Markets at the RAS Institute for Energy Research, said that reduction of oil extraction by 15 million tons (less than 3% of 523.2 million tons extracted in 2013) would have a positive impact on oil prices, though Russian companies will need technological solutions.

Kulagin expressed confidence that reduction by the proposed volumes would neutralize the excessive offer. He noted that speculators had anticipated reduction of demand on the market and will try to lower prices as much as possible before they start going up.

The OPEC will hold a conference on November 27. Quotas for oil extraction will be the main topic of the meeting. Novak sees little chances for reduction of quotas in the light of OPEC countries’ struggle for consumers.

Russian Energy Minister Alexander Novak, Rosneft Head Igor Sechin and Venezuelan Foreign Minister Raphael Ramirez are attending Russian-Venezuelan talks on oil prices in Vienna today. They will discuss Russia’s proposal to lower oil extraction with OPEC states. Russia offers to reduce oil extraction by 15 million tons simultaneously with reduction of its extraction in OPEC countries by 70 million tons. Raphael Ramirez proposed the same idea during a visit to Russia.Vyacheslav Kulagin, the director of the Center for Studies of World Energy Markets at the RAS Institute for Energy Research, said that reduction of oil extraction by 15 million tons (less than 3% of 523.2 million tons extracted in 2013) would have a positive impact on oil prices, though Russian companies will need technological solutions.Kulagin expressed confidence that reduction by the proposed volumes would neutralize the excessive offer. He noted that speculators had anticipated reduction of demand on the market and will try to lower prices as much as possible before they start going up.The OPEC will hold a conference on November 27. Quotas for oil extraction will be the main topic of the meeting. Novak sees little chances for reduction of quotas in the light of OPEC countries’ struggle for consum