Russian-Saudi agreement will contribute to stabilization of oil market — Novak

The agreement between Russia and Saudi Arabia will contribute to consensus among oil producing countries on stabilization of oil market, Russia’s Energy Ministry Alexander Novak has said today. 

He also added that the balance between supply and demand on the oil market remains, and investments in the industry decreased by about $200 bln annually.

“Today we see that the rebalancing of the market lingers on, there is a decrease in investments in the sector, which is about $200 bln a year. As a result, now we are witnessing a negative trend in indicators for geological exploration and growth of reserves, and in the future we may even face oil shortage,” the minister said.

According to him, the freeze of oil production will help the market find the supply and demand balance, resume investments and avoid shortage of oil in the future.

Source: TASS

Author: zeina

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