the Kremlin has called “the speculative moment” situation with negative prices in the oil market. Dmitry Peskov said that the authorities closely monitor the dynamics of changes in oil prices. He stressed that the market collapsed the prices of may futures, not oil prices. “This is absolutely speculative shopping time, which was associated with the date of the close of trading,” – said the press Secretary of the President.
Sands has asked not to have that in the oil market “apocalyptic overtones”. All professionals, in his words, give an account that is not a reason for negative assessments of the current reality and what is happening with themselves in oil prices. “This is an unfortunate situation, but it is not necessary to associate with the dynamics of the prices”, – said Peskov.
He reminded that the Russian government has all necessary reserves to offset the negative consequences for our economy and, if necessary, they will be used.
the price of Russian oil fell after the price of crude oil for the first time in history became negative. The cost of the nearest futures contract at the auction on April 20 in the point reached minus 40 dollars per barrel. Russian Urals sank not so impressive, but still did not escape the negative quotes. The estimated price was$2 per barrel, which is 112,7% smaller than before.
the Kremlin has repeatedly said that they believe in the effectiveness of the prisoner at the beginning of April the transaction of OPEC +. The problem is that it will be operational only in may, and while the production has not decreased, pressures on the markets continues.
Recall that the 23 countries that are the largest producers agreed to reduce production to 9.7 million barrels per day in may and June with the objective of stabilizing the oil market. From July to December 2020, the reduction will reach 7.7 million barrels a day, from January 2021 to April 2022 5.7 million barrels per day. The OPEC+ is ready to join 10 oil-producing countries outside the cartel.
Deputy Chairman of the security Council, Dmitry Medvedev said that the reason for the zeroing of the oil market cartel. “Given our experience in the gas sector offer to sell oil on the principle of take or pay. Ready to discuss this option with our partners”, – he wrote on Facebook.
Dmitry Peskov said that Lenin is the press Secretary Dmitry Medvedev and could not comment on his statements.