MOSCOW. (Interfax) - OPEC expects Russia to cut oil production by 200,000-300,000 barrels per day Vagit Alekperov the president of Russia oil major (39 USD, 9,37%), told journalists.
Alekperov said the size of the reduction was requested by OPEC.
The cut will most likely be calculated based on planned oil production in 2009. "The price of oil today is unobjectively low. The producers are not happy with it. It does not allow them to form their investment funds," he said.
A fair price for a barrel of oil would be in the USD 70-USD 90 range, he said. "If the government decides to limit production, we will abide by that," he said. If that happens, the company will draft a plan of measures listing at which fields and by how much oil production could be cut "painlessly."
President Dmitry Medvedev has said Russia might cut oil production in order to support prices. "Our partners, our colleagues who are members of the oil club [OPEC] are asking us for this quite persistently - no matter who I meet, they ask us to pursue a coordinated policy," Medvedev said. He also said Russia might join organizations of hydrocarbon suppliers.
Energy Minister Sergei Shmatko said Russia would air its proposals on oil production cuts no later than December 17. Shmatko stressed that Russia wants to reach a consolidated position on the matter with other non-OPEC oil-exporting countries.
Deputy Prime Minister Igor Sechin will take part in the OPEC meeting in Algeria on December 17. Shmatko and the heads of the big Russian oil and gas companies may also attend.
The price of oil has declined by over 67% since July.
OPEC's member states held an extraordinary meeting in Cairo on December 1. The resulting announcement that OPEC might approve production cuts at the regularly scheduled meeting on December 17 did little to impress the market. Oil prices have sunk to four-year lows since then.