Saudi Arabia: Production cuts add $ 25 per barrel
Saudi Arabia's Energy and Industry Minister, Khalid Al-Falih, said the OPEC-led cut-off agreement between Russia and OPEC had added at least $ 25 to the price of a barrel.
"The barrel of oil is currently trading at $ 70.3, which means that prices have risen by about $ 25 thanks to the production reduction agreement, which came into force in early 2017," Al-Faleh said on the sidelines of his forum in Davos, Switzerland.
The minister added, according to the agency "Tass" Russian, that the recovery of oil prices returned additional revenue on the budgets of oil-exporting countries, not companies. "
"The economies of developing countries, Europe and Russia are growing again, China is maintaining relatively high growth rates and India is growing," he said. So I think that's all good for the energy sector, and finally the world is watching that cooperation between Russia and Saudi Arabia is working, and markets take us very seriously. "
The energy minister said that Saudi Arabia's oil reserves exceed 260 billion barrels, stressing the importance of the role of oil in the global economy.
Al-Falih said that talking about the peak of demand for oil misses the reality of the world's need to about 1.5 million barrels per day to meet the increase in demand annually, and add about 2.5 million barrels to compensate for the natural decline in world production.
Al-Falih hinted that rock oil would meet only a small part of this demand, in an indication of the need to continue in the oil sector to ensure that future demand is met.
Russia and Saudi Arabia, the world's top oil producers, play a pivotal role in the cut-off agreement, thanks to the success of the agreement, which cuts production by 1.8 million barrels of crude oil per day.
With the announcement of the agreement by the end of November 2016 oil prices rose from the level of 47 - 48 dollars to more than $ 70, the highest level of oil prices since the end of 2014.