Oil price could fall to $30: Novak

MOSCOW-Reuters

Russian Energy Minister Alexander Novak said on June 10 he could not rule out a scenario in which oil prices could fall to $30 per barrel if the global oil deal was not extended.

Novak said there were big risks of oversupply on the market and that Moscow needed to monitor the oil market more in order to be able to take a balanced decision in July.

Oil prices steadied on June 10 as major producers Saudi Arabia and Russia had yet to agree on extending an output-cutting deal and U.S.-China trade tensions continued to threaten demand for crude.

Saudi Energy Minister Khalid al-Falih, who was in Moscow for talks with his Russian counterpart, said on June 10 that Russia was the only oil exporter still undecided on the need to extend the output deal agreed by top producers.

The Organization of the Petroleum Exporting Countries and some non-members, including Russia, have withheld supplies since the start of the year to prop up prices.

Moscow is considering whether further cuts could allow the United States to take Russian market share and has yet to signal whether it will continue to curb its supply.

Analysts also warn of risks to the global economy from the United States’ trade war with China.

China’s crude oil imports slipped to around 40.23 million tonnes in May, from an all-time high of 43.73 million tonnes in April, customs data showed, due to a drop in Iranian imports caused by U.S. sanctions and refinery maintenance.