“I do not think that anyone will now express a desire to reduce [oil] extraction,” Novak told journalists on the sidelines of the Eastern Economic Forum (EEF), currently being held in the Russian city of Vladivostok.
He added that were the states to reduced their output levels, this would increase oil prices in the short term only. The move would also lead to a rise in shale oil projects and, as a consequence, to further decrease in oil prices.
Global oil prices have dropped dramatically due to oversupply in the market since the summer of 2014. In November 2014, the Organization of the Petroleum Exporting Countries (OPEC) decided to keep its oil output levels unchanged, which led to a further slump in crude oil prices.
The first EEF is being held on September 3-5 in the Russian city of Vladivostok, located on the Pacific Ocean, as a platform for dialogue between international investors, the Russian government and countries of the Asia-Pacific Region.
