$50 Oil Acceptable for Russia

$50 Oil Acceptable for Russia
$50 Oil Acceptable for Russia

Russia believes an oil price of $45-50 per barrel is acceptable for the global oil market to balance, as it prepares to meet leading oil producers in Qatar later this month, sources familiar with Russian plans said on Wednesday.

Leading oil producers plan to meet in Doha, Qatar, on April 17 to cement a preliminary deal reached by Russia, Venezuela, Qatar and Saudi Arabia in February to freeze oil output at levels reached in January, to curb a surplus in the oil market, Trade Arabia reported.

"Now there is discussion of how long production will be frozen and ways to monitor the agreement," one of the sources said.

"The level of $45-50 (per barrel) is acceptable from the point of view of market balance. If prices go higher, shale oil production could start to recover."

Oil producers such as Russia and Venezuela are highly dependent on energy revenues, with their state budgets at risk after global oil prices fell to under $40 per barrel from over $115 in June 2014.