Russia has stated it is comfortable with oil prices at around the $60 mark with President Vladimir Putin thanking Saudi Arabia for its cooperation in managing the global oil market.
Ahead of next week’s OPEC+ meeting, Putin said Russia was comfortable with oil prices at $60 as it is budgeted at $40 a barrel and has been calculated at $43 for next year.
Referring to the country’s cooperation with OPEC, Putin said: “We are now in contact with OPEC and if needed, we will continue this joint work.”
Two weeks ago, speaking to reporters about the OPEC+ deal, Putin said: “As for the need to limit production or not, I will not say anything about this for the time being. We must be very careful in this respect because every word is important and affects the federal budget revenues. However, it is obvious that we should cooperate, and we will cooperate.”
“About $70 per barrel suits us perfectly well considering that the expenditure side of our budget is based on $40 per barrel,” Putin said in mid-November.
Although Russia has since signalled that it is comfortable with the reduced prices and is reluctant to enforce another production cut after it increased output to a post-Soviet high.
However, OPEC lead Saudi Arabia are under pressure from the US to maintain low oil prices and as Saudi watchers have noted, Crown Prince Mohammed bin Salman will avoid confrontation with Washington, including that related to oil prices.
Analysists have also suggested that the G20 summit in Argentina could in fact be more significant that next week’s meeting.