Russian Deputy PM: I believe decline in oil prices cannot last for too long

Baku. 28 December. REPORT.AZ/ Deputy Prime Minister Arkady Dvorkovich expects that the decline in investment in production will raise oil prices, Report informs referring to the TASS, he said in an interview to Rossiya 24 TV channel. 

"I believe decline in oil prices cannot last for too long, because for a number of months, for some time, any company, any producing country is able to sustain such low prices. But then investment will inevitably go down, which means that production will fall and prices will rise," Dvorkovich said.

A drop in prices of Brent crude oil from the highs in June 2014 is now around 70%. In December 2015, Brent became cheaper to its lowest level since 2004, falling to $36 per barrel. For comparison, in December 2008, the Brent crude oil price fell to $36.2 per barrel, having fallen in price by 75% in 5 months. 

Oil prices have accelerated the fall after OPEC meeting on December 4. At the end of the 168th meeting in Vienna, the oil ministers of the OPEC countries did not make any clear decision on production quotas because of the position of OPEC non-members. Currently, the volume of oil production by OPEC members is estimated at 31-32 million barrels per day. 

The previous quota stood at 30 million barrels per day. According to Iraqi Oil Minister Adel Abdel Mahdi, a decision on quotas was not adopted because of the position of countries outside the cartel.