Lukoil plans reduction of oil output in 2016 due to low price

MOSCOW, January 25. /TASS/. Lukoil does not plan to keep its last year’s record oil production level of 100 mln tonnes in 2016, the company’s Vice-President told TASS, adding that it’s more profitable to sell oil at high price. "I don’t think so. Amid high uncertainty it’s at least unreasonable to chase records and increase supply on an oversupplied market," he said when answering the question whether the company plans to repeat its last year’s output record. According to Fedun, the strategy of flooding the market with cheap oil at any cost is incorrect as it could be sold for double what it costs within 6 months or one year. For doing this Russian companies has a degree of safety as they’re not burdened with debts or any tough financial commitments, he said. "Today (companies) should supply the volume of oil, which will not disrupt the country’s budget and will not put additional pressure on the market on the other hand," Fedun said, adding that "it’s better to sell one barrel of oil at 50 dollars than two (barrels of oil) but already at 30 (dollars)." Read more