Fedun predicted the price of oil after OPEC agreements+

Photo: TASS/Dmitry Serebryakov

Vice-President and co-owner of “LUKOIL” Leonid Fedun in an interview with RBC said that when implementation of new OPEC agreements regarding the reduction of oil production the price of raw materials will remain at the level of $ 30-40 per barrel.

In this case, Russia will get in the form of cash 70-80 million dollars of additional income per day.

Fedun said that at the end of March, the company sold some of the batch of oil Urals at a negative price, which brought more than 1 thousand rubles of the loss per ton.

“If the deal isn’t done, after 30-40 days, we still began to stop well at a price, relatively speaking, 15-20 dollars a barrel, not actually getting normal cash flow, neither for oil nor for the budget of the export duty would almost zero out”, he said.

Previously, the OPEC Alliance+ has agreed on a new agreement to reduce oil production. It will operate for two years beginning may 1.

it is Expected to reduce total production at 10 million barrels per day from October 2018 in may-June, 8 million in the second half of the year and then to 6 million.

While Russia and Saudi Arabia should cut production from the base to 11 million barrels per day to 8.5 million, 9 million and 9.5 million, respectively.

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