Rosneft boss says he will not comply with output freeze as oil prices lose some of yesterday’s gains
Oil prices nudged down slightly this morning after hitting a 14-month high yesterday on indications Russia would take part in an Opec production cut.
However, despite Vladimir Putin's remarks that an output cut is likely to be the "only right decision" to maintain stability in the global energy sector, this morning one of Russia's top oil bosses has muddied the waters after saying he will not adhere to a production freeze.
Igor Sechin, head of state-controlled energy giant Rosneft, said his company will not cap oil production as part of a possible agreement with the Organization of the Petroleum Exporting Countries (Opec), Reuters reported.
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Last month, the organisation provisionally agreed to cut daily production by 700,000 barrels, though the terms will not be finalised until a meeting in Vienna in November.
It is the first such agreement the group has reached in eight years.
Today, oil prices slid slightly but most held onto their more than 12 month-gains this morning.
Brent crude, the global benchmark, was down 44 cents or 0.83 per cent to $52.70, though prices edged above $53 for much of yesterday.
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US sweet crude was trading down 36 cents or 0.7 per cent at the time of writing to $50.99. The American benchmark only broke through the $50 barrier for the first time since June a few days ago.
Yesterday, BP chief executive said the oil market is "pretty much in balance", despite industry expectations that the global supply glut will remain well into next year.