Putin Calls For 'compromise' Towards Oil Freeze

VLADIVOSTOK, Russia, (APP - UrduPoint / Pakistan Point News - 2nd September, 2016) : Russian President Vladimir Putin in an interview published Friday urged compromise to find agreement on an oil production freeze to combat a global supply glut.

"We consider that it is the right decision for world markets, that's the first thing," Putin told Bloomberg News. The globe's major oil producers have been unable to strike a deal on freezing output due mainly to a dispute between Saudi Arabia and Iran over Tehran's desire to boost levels after the lifting of sanctions.

"I think that in fact from the point of view of economic expediency and logic it would be correct to find some sort of compromise, I am sure that everyone understands this," Putin said. Oil markets rallied last month on hopes that producing countries will limit supply when they meet later this month in Algeria.

But so far nations such as Iran and Iraq show no signs of a willingness to freeze output, raising the prospect of another failure. Russian energy minister Alexander Novak told Russian news agency Interfax on Friday that Moscow has not yet been officially invited to the Algiers gathering but said it was "likely" that the meeting would discuss the "current situation".

Oil plunged from over $100 per barrel in mid-2014 after OPEC nations, which usually cut production to support prices, instead boosted output in an effort to drive out new shale producers in the United States. After falling below $30 per barrel at the start of the year, oil prices are now over $40 per barrel.