Russia Says No Further Curbs On Oil Output Needed As OPEC Pact Is Working

Russian Energy Minister Aleksandr Novak

Russian Energy Minister Aleksandr Novak said a global agreement between the OPEC oil cartel, Russia, and other producers is working and no further measures to curb oil output are needed at this time.

"I think that the decisions that were taken, they were the right ones," he told Reuters on July 6, adding that any additional measures would create "chaos" and misunderstanding in the oil market.

"The prices have been stabilized at higher levels, which allows the interests of investors, producers, and consumers to be taken into account," Novak said.

Oil prices registered their biggest first-half decline in almost two decades this year but remain near the $50-$60 a barrel range Novak said Russia and OPEC targeted when they agreed in November to 1.8 million barrels a day in output cuts.

Premium crude in London is currently trading around $48.

"Despite the recent drop of oil prices, we believe that the OPEC deal is effective" and is causing a declne in global stockpiles of oil that will bolster prices, Novak told TASS.

Based on reporting by Reuters and TASS