Decisions made by OPEC and its allies to manage oil supply should be trusted, said the chief executive of a Russian sovereign wealth fund, adding that he believes that the major oil-producing nations are not interested in having crude prices at "artificially high" levels.
Kirill Dmitriev, CEO of Russian Direct Investment Fund, was asked for his view on U.S. President Donald Trump's latest attempt to influence the policy of the Organization of the Petroleum Exporting Countries.
Trump tweets: Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!
Trump, in a Twitter post on Monday, said he hopes OPEC "will not be cutting oil production" after Saudi Arabia's energy minister said the cartel and its allies — which includes Russia — may need to reduce outputby about 1 million barrels per day. The intergovernmental group reduced its forecast for oil demand in its latest monthly report — its fourth consecutive downward revision to consumption growth for 2019.
"I think we need to trust the decision-making of the joint body because they're not interested in artificially high oil prices. What they want is market stability, which is good for consumers and producers, and this is what we've had over the last several years," Dmitriev told CNBC's "Street Signs" on Wednesday.
"If we work jointly, we would have stable prices now and also stable prices in the future avoiding major shocks," he added.