Putin Urges Cap on Global Oil Output

MOSCOW—Russian President Vladimir Putin called on oil-producing countries to cap production levels at a meeting later this month, saying "it was the right decision for world energy."

A similar initiative failed in April, when Saudi Arabia backed out of an agreement after Iran said it wouldn't join a deal until it reached pre-sanctions levels of oil production.

In the interview with Bloomberg published Friday on the Kremlin website, Mr. Putin argued that it was "unfair" to expect Iran to cap output at this stage, but said he hoped a deal could be reached with the Saudi side.

An informal meeting of OPEC member countries to discuss a possible cap on global oil production is scheduled to take place on the sidelines of the International Energy Forum in Algeria from Sept. 26-28.

"I would very much like to hope that every participant of this market that's interested in maintaining stable and fair global energy prices will in the end make the necessary decision," Mr. Putin said. He described Saudi Arabia's Deputy Crown Prince, Mohammed bin Salman, as "a very reliable partner with whom you can reach agreements, and can be certain that those agreements will be honored."

In separate comments, Mr. Putin said that Russia was considering ramping up its gas delivery capacity to countries on its eastern border, although he didn't give details.

"Gazprom has a desire to expand its export market," he said. "If problems arise with Europe, we will be able to easily switch to the east."

Write to Laura Mills at [e-mail]

(END) Dow Jones Newswires

September 02, 2016 05:35 ET (09:35 GMT)

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