Russia ready to join oil freeze process

By Dilara Zengin

ISTANBUL (AA) - Cutting oil production, the strategy that Russian President Vladimir Putin supports, is the best way to stabilize the market, Russia's Energy Minister Alexander Novak said on Tuesday in Istanbul at the World Energy Congress.

Speaking at the congress, of which Anadolu Agency is the global communication partner for 2016, Novak said the oil price issue is different and is lasting longer than previously.

"We should participate in all discussions to have sustainable energy production and to avoid a crisis," he added.

He explained that although production is relatively high, investor confidence is down because of low oil prices adding that "in the last two years, investments reduced to $450 billion."

Novak underlined the need for new investments and if this does not happen, the quality of energy resources and their diversity will be reduced. He offered to work with OPEC to stabilize market conditions.

"We will not change the market process, we will just try to ameliorate market conditions. Today, not only producers but also consumers should think about these conditions," he said.

Russian Energy Company Lukoil’s Vice President Leonid Fedun also said that measures should be taken to prevent the impacts of low oil prices on investments.

"An $80 per barrel oil price would be the market’s golden mean and the oil market needs a price that will ensure and attract investments " he affirmed.

Nonetheless, he added that they do not expect an increase in oil prices in the short term.