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Russia’s energy minister deems oil price of $55-70/bbl as ‘optimal’ -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO – Russian Energy Minister Nikolay Shulginov attended a session at the Russian Energy Week International Forum, Moscow (Russia), October 14, 2021. REUTERS/Maxim Shemetov

MOSCOW, Reuters – According to a Tuesday interview, Russia’s Energy Minister regards an oil price between $55-70 a bar as ‘optimal.’

On Tuesday, oil prices reached their highest level since 2014. This was due to tensions between Russia & Ukraine. Moscow sent troops to two regions of eastern Ukraine that were deemed rebel areas.

Oil prices have an effect on other prices. This means we’ll see higher prices in all sectors of the economy due to high oil prices. Nikolai Shulginov, Energy Intelligence said that high oil prices lead to slower growth of demand.

He said that Russia is increasing its oil production in accordance with the OPEC+ agreement.

According to the minister, Russia is able to expand its oil production, even through new projects like Vostok, he stated.

We see an increase in exploration and production. Shulginov stated that the 2035 plan for development of oil industry calls for growth and stabilization.

Russia and the Organization of the Petroleum Exporting Countries have been working together to restore oil production. This has taken place amid a recovering demand after the pandemic.

Russian production of oil-and-gas condensate C-RU-OUT increased to 11 million barrels/day (bpd), which is a new record since April 2020.

Russia will have restored 1.8million barrels per day from the 2,000,000 bpd reductions it made in April 2020. The announcement was made by Alexander Novak in Russia, Deputy Prime Minister.

Russian oil production grew by 2.2% to 524.05 Million tonnes in 2013.

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