Putin did not say publicly what measures Russia could take. Russian officials earlier said the government is considering setting up an oil reserve to influence prices, but stopped short of joining energy-producing cartel OPEC in production cuts to prop up flagging oil prices. U.S. crude is currently trading just above US$60 a barrel — off a July peak of US$147 a barrel. Russia is not a member of OPEC.
Putin also offered some relief to Russian major oil companies, which have complained that they are making a loss on their exports because of rapidly falling oil prices, by proposing to review export duties monthly rather than every two months. State-run pipeline monopoly Transneft said over the weekend that oil companies have trimmed back November exports by 25 percent.
Russia is facing its first annual decline in oil production in a decade as companies labor under a heavy tax burden and western Siberian oil fields mature. Oil majors have gone cap in hand to the government for loans to invest in production and exploration amid dire borrowing conditions globally.
Analysts at UralSib bank said today that oil tax cuts are vital if Russia is to maintain output and competitiveness.
I need to investigate how much oil revenue goes towards social programs in Russia, Iran and Venezuela, so that we can understand the desperation that is about to unfold if oil prices begin to plummet.What lengths will countries go to inorder to keep oil prices high.
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