Friday, September 23, 2016 3:07:08 PM
Don’t bank on oil freeze boosting prices, warns Russian finance minister
A touted oil production freeze by Saudi Arabia might not be enough to boost crude prices, even if it goes ahead, the Russian finance minister told CNBC.
Anton Siluanov spoke to CNBC Friday as media reports circulated that Saudi Arabia had offered to freeze oil output if rival producer Iran did the same.
Siluanov warned that even if the deal went ahead, any upturn in oil prices would be temporary, as this would encourage more production elsewhere.
"A freeze on the part of several countries ... will not produce the effect that some people are anticipating ... There is the possibility that there'll be an increase in oil production as a result of shale oil and then the prices will fall again," he told CNBC in Moscow.
Russia rivals with Saudi Arabia as the biggest oil-producing country in the world and has been hit hard by the downturn in crude prices since July 2014.
http://www.cnbc.com/2016/09/23/dont-bank-on-oil-freeze-boosting-prices-warns-russian-finance-minister.html
A touted oil production freeze by Saudi Arabia might not be enough to boost crude prices, even if it goes ahead, the Russian finance minister told CNBC.
Anton Siluanov spoke to CNBC Friday as media reports circulated that Saudi Arabia had offered to freeze oil output if rival producer Iran did the same.
Siluanov warned that even if the deal went ahead, any upturn in oil prices would be temporary, as this would encourage more production elsewhere.
"A freeze on the part of several countries ... will not produce the effect that some people are anticipating ... There is the possibility that there'll be an increase in oil production as a result of shale oil and then the prices will fall again," he told CNBC in Moscow.
Russia rivals with Saudi Arabia as the biggest oil-producing country in the world and has been hit hard by the downturn in crude prices since July 2014.
http://www.cnbc.com/2016/09/23/dont-bank-on-oil-freeze-boosting-prices-warns-russian-finance-minister.html
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