Moscow(ANN)-Russia’s President Vladimir Putin says current oil prices around $60 a barrel are “absolutely fine” for his country two weeks after he said he favored a level of $70 for Russia.
Speaking at an investment conference in Moscow on Wednesday, Putin said his country was ready to work with the Organization of the Petroleum Exporting Countries (OPEC) on stabilizing the oil market if needed.
He further praised Saudi Crown Prince Mohammad bin Salman for what he described as the success of an agreement between OPEC and non-OPEC producers to cut outputs and stabilize the market.
Putin said the current oil price was “balanced and fair” and well above the level Russia needed to meet its budget forecasts.
So far, Russia has been reluctant to commit to further supply cuts and will discuss the matter with its allies from the OPEC in Vienna next week.
This weekend, Putin will hold talks with the crown prince in Buenos Aires on the sidelines of the Group of 20 summit, Bloomberg reported.
The Russian president had last month blamed the policies of US President Donald Trump against major producers Iran and Venezuela for increasing oil prices.
He has said that Trump was right to complain that oil prices were high but he had to “look in the mirror” to find out why.
“President Trump has said he thinks the oil price is too high. Well, probably to some extend he’s right, but we are absolutely OK with it at $65 to $75 per barrel to ensure the efficient operation of oil companies and ensure investment,” Putin said.
Last month, Trump criticized Russia and the OPEC over a 2016 deal that curbed oil output in order to help the market recover after price slumps due to excess global supply in mid-2014.
Disappointed by the deal’s success, Trump has accused OPEC, Saudi Arabia and Russia of keeping prices high and called on them to drive them down by increasing production.
This is while analysts blame Trump’s own decision to sanction the oil exports of OPEC members Iran and Venezuela as a key contributor to the issue, as buyers fear that omitting the two top oil producers will result in a shortfall in global supply.
