Oil drilling rig
© REUTERS/ Sergei Karpukhin
Russia is ready to join the oil production freeze as part of the efforts to stabilize the global oil market and supports the decisions adopted by the Organization of the Petroleum Exporting Countries (OPEC), Energy Minister Alexander Novak said Tuesday.

OPEC agreed in late September to cut its oil production for the first time in eight years. The output ceiling was set at 32.5-33 million barrels a day. Further details of the deal are due to be unveiled at the group's meeting in November.

"At this point, the freeze or even the reduction is the most reasonable way to re-balance the market in order to reduce the volatility risks for all of us...which could have a negative impact on the current market situation, especially on investments in the sector," Novak said addressing the World Energy Congress in Istanbul. "We, in turn, are ready to join the freeze as we already stated in January and confirmed our readiness in April," Novak stressed.

Rosneft boss says no to output freeze or cut?

The man in charge of Russia's largest oil company Rosneft is skeptical about a global crude production freeze or cut, despite President Putin's pledge to cooperate with OPEC.

"Why should we do it?" said Rosneft CEO Igor Sechin to Reuters, when asked whether his company, which accounts for 40 percent of Russian oil production, plans to take part in the proposed OPEC output cap. Sechin is known for his hostility toward OPEC, and repeatedly says the cartel no longer controls the global oil market.

He also doubts OPEC members such as Iran, Saudi Arabia and Venezuela would even cut production, as oil above $50 per barrel will make US shale projects profitable again.

According to Sechin, in 2016 Rosneft will "significantly" increase oil production compared to last year. Last month, Russia pumped a record volume of oil of more than 11.2 million barrels per day.


Comment: Looks like OPEC and non-OPEC members have increased output ahead of any freeze talks: Oil price falls as OPEC production hits record in September


Presidential spokesman Dmitry Peskov said Sechin isn't contradicting President Putin's position, adding that Reuters chose just a fragment of a longer response the CEO gave.

"The official position was voiced by President Vladimir Putin, and it is a wish to freeze or reduce oil production," Peskov said.