Crude oil prices 'just fine' around $70 per barrel, Putin says

Nov. 15 (UPI) -- Vladimir Putin, president of Russia -- one of the world's three biggest crude oil producers of crude oil along with the U.S. and Saudi Arabia -- said that $70 per barrel is a reasonable price.

"A reasonable price both for producers and consumers is needed. What we are having now, what has been recently -- around $70 (per barrel) -- is just fine for us," Putin during a press conference in Singapore, the Russian news agency Tass reported Thursday.

The Russian budget relies on the price of Brent crude oil at $40 per barrel, which "allows us to feel comfortable, work calmly, stably, achieve very good results that influence macroeconomic indicators," Putin said

The comment comes three days after U.S. President Donald Trump tweeted that "hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply."

Trump's comment, amid oversupply concern, contributed to a plunge in crude oil prices early this week, analysts said.

Trump's comments came as the OPEC and non-OPEC countries did not reach a consensus during a recent meeting, but agreed to monitor the markets and meet again on December 6 to decide on a joint action.

Saudi Arabian Energy Minister Khalid Al-Falih said at the meeting that Saudi Arabia planned to reduce oil exports by half a million barrels a day in December compared with November. Saudi Arabia had produced 10.7 million barrels per day since October, he said.

The meeting occurred after sharp reductions in crude oil prices that saw declines in Brent crude oil prices drop from a peak of $86 per barrel on October 3 to $70.18 per barrel on Nov. 9, just ahead of the meeting.

According to an OPEC report released Tuesday, Russia is estimated to be producing 11.2 million barrels per day in the fourth quarter, down from 11.4 million barrels per day in the third quarter.

U.S. crude oil production reached 11.3 million barrels per day in August, when it became the world's top producer, according to the Energy Information Administration.

Brent front-month futures crude were quoted at $66.81 per barrel Thursday just before 9.00 a.m.