UPDATE 1-Putin says Russia disagrees with OPEC on fair oil price

(Adds detail, quotes)
By Vladimir Soldatkin
ST PETERSBURG, June 6 (Reuters) - President Vladimir Putin
said on Thursday Russia had differences with OPEC over what
constituted a fair price for oil, but that Moscow would take a
joint decision on output with OPEC colleagues at a policy
meeting in the coming weeks.
Putin's comments have set a stage for tough talks between
Russia and its partners over their policy on the global oil
market, which are expected to take place within a month.
The Organization of the Petroleum Exporting Countries and
large oil producers led by Russia are due to meet in Vienna in
the end of June or early July to decide on their policy for the
next half of the year as the current deal expires.
They have agreed to cut their combined production by 1.2
million barrels per day, or more than 1% of global output, from
Jan. 1 until the end of June in order to support oil prices and
balance the global crude market.
Russia joined the efforts with the OPEC in 2016 and their
cooperation has helped to stabilise oil pieces and ease an
overhang of stockpiles.
Speaking at a gathering with the foreign media in St
Petersburg, Putin said he would not reveal what Russia and its
partners would do on the oil market in the second half of the
year, but said several factors, including higher oil demand in
the summer should be taken into account.
Putin also pledged to continue cooperation with OPEC, though
Russia and the organisation's kingpin, Saudi Arabia, have
certain differences on so-called "fair price" of oil.
"This is natural", said Putin. "Look at the price of a
barrel, which Saudi Arabia uses to calculate its budget. This is
significantly higher than for us," Putin said, adding that
Russian budget implied an oil price of $40 per barrel.
According to an International Monetary Fund official, Saudi
Arabia would need oil priced at $80-$85 a barrel to balance its
budget this year. Oil prices are trading at over $60 per barrel,
pressured by global trade disputes.
Putin said a price of $60-$65 a barrel suited Moscow and
that the decision by OPEC and its oil exporting allies should
also take into account the decline in production in Iran and
Venezuela, and problems in Libya and Nigeria.