Russia has expressed full support for a proposed plan to freeze oil production as a way to support oil prices.
Russian President Vladimir Putin told the World Energy Congress in Istanbul that his country is ready to reduce oil production as discussed in a recent meeting of OPEC and non-OPEC states in Algeria.
Putin criticized the surplus of oil and warned that if current tendencies continue, it will lead to lack of financing, deficits and new price fluctuations – what he said will hit both producers and consumers.
"Russia is ready to join joint measures on reducing the production of oil and invites other oil exporters to do so," he said, emphasizing that the only right decision to maintain the stability of world energy resources is a freeze or cut in production.
"We support the recent OPEC initiative to fix limitations on production and hope that at the November OPEC meeting this idea will be transformed into real agreements giving a positive signal to markets and investors," AP quoted Putin as telling the World Energy Congress.
Oil prices surged over a dollar after Putin’s speech. The North Sea benchmark Brent was trading at over $53 per barrel, rebounding from Monday morning losses. The US benchmark West Texas Intermediate reached $51 per barrel, Russia Today reported on its website.
Oil producing countries want to reduce the global glut of an estimated 1.0 million to 1.5 million barrels per day (bpd). On September 28, OPEC agreed to curb production by 700,000 bpd.
The details of how the production cuts will be shared are still to be worked out at the next OPEC meeting in Vienna on November 30. OPEC also needs to convince oil producers outside the group like Russia to participate, RT added in its report.