Russia open to oil freeze talks

Moscow is willing to discuss the possibility of freezing oil production if prices fall further.

Russian Energy Minister Alexander Novak said on Monday that Moscow would be willing to discuss with OPEC the possibility of freezing oil production if prices fall further.

Several members of the Organisation of the Petroleum Exporting Countries said last week they wanted to revive the idea of setting new limits on oil production this fall when the 14-country group meets in September.

“We have always taken the position that we are ready for negotiations. Therefore, if such a need appears, and countries, conditionally OPEC, will discuss this issue, we also will be ready,” Interfax reported Mr Novak as telling journalists.

He also said that he could meet his Saudi counterpart in September. Russia is not a member of OPEC.

A similar initiative failed last April during talks in Doha, when Saudi Arabia refused to freeze its production unless Iran promised to do the same. Tehran has refused to support freezing measures until its oil production reaches pre-sanctions levels.

Some OPEC members have said they could reach a freeze deal as early as the week of Sept. 26, when oil producers meet for the International Energy Forum in Algeria. Talk of a freeze has gained support from the Arab Persian Gulf as long as OPEC and non-members, such as Russia, coordinate production freezes.

Current oil prices are below what many oil-producing states need to balance their budgets. Brent crude was trading at $US44.90 a barrel on Monday.

- Dow Jones newswires