Russia needs to start working with OPEC to cut oil supplies to the world market to support prices, Leonid Fedun, Vice-President of Lukoil , was quoted as saying on Monday. “In my opinion, if such a political decision is taken, Russia should jointly work with OPEC to cut supply to the market… “It’s better to sell one barrel of oil at $50 than two barrels at $30,” Fedun said. Lukoil is Russia’s second largest oil producer.

OPEC and Russia, the world’s top oil producers, have refused to cooperate to help buoy global oil prices as they were defending their market share from each other. As a result, Brent has fallen to around $31 per barrel, from $115 in the middle of 2014. Weak oil prices are also hitting Russia’s commodity-dependent budget and the rouble, which touched all-time lows of around 86 per U.S. dollar last week.

OPEC has always said it would agree to cut if other producers such as Russia joined such a move. However, Russian officials have said severe weather conditions do not allow a manageable production cut. Russia said it expected the global market to rebalance on its own after the most costly producers cut output.

The Russian Energy Ministry has slightly revised down data on oil production in the country in December, to 10.80 million barrels per day (bpd,) from a preliminary reported 10.83 million bpd.

Lukoil Chief Executive Vagit Alekperov said last week that total oil production in Russia could decline by 2-3 per cent this year and possibly more if the government raises taxes. Lukoil’s own oil output exceeded 100 million tonnes (2 million bpd) last year, the company said earlier. (Reuters/NAN)