The fall in global oil prices may bring the world?s second largest oil exporter Russia and oil cartel Opec together to control the freefall.
Stating that low crude oil prices were hurting the oil producers who have budgeted their investment at $70-90 per barrel prices, the Russian Energy Minister Sergei Shmatko said Kremlin was looking at coordinating investments and policies with Organisation of Petroleum Exporting Countries (Opec) to get a grip over the markets even as it plans to form a cartel of gas producers with Iran and Qatar.
?We cannot rule out cutting down of production,? he said when asked if Kremlin was looking at cutting oil production, just like Opec, to shore up crude oil prices which have fallen from $147 per barrel in July to around $50 a barrel currently.
?In OPEC, they are actively discussing measures to protect current market of oil and reduce production,? he said addressing the India-CIS round table on Hydrocarbons organised jointly by Ficci and the petroleum ministry. The Russian minister blamed the freefall of crude oil prices to recession in major economies and speculation in the oil market. Even after Opec cut oil production by 1.5 million barrel, crude prices have fallen 7%. ?Today?s oil prices are not determined by traditional parameters of demand and supply but it is under effect of whole financial crisis and speculation,? he said.