Putin admitted the decline in world oil production 10 million barrels per day

“the Epidemic of the coronavirus has affected almost the entire global economy, leading to a sharp drop and “compression” of demand especially from the main consumers of energy and transport, industry, some other industries,” – said the head of state. This not only negatively affects financial and economic stability of the oil industry worldwide, but also undermines investment, may affect the preservation of jobs. “Everything can turn into a high technological and even environmental risks,” Putin added.

But the demand will inevitably begin to recover and the industry could face an acute shortage of oil, all the negative consequences for the world economy, predicted the President. “Because prices can fly up,” – explained he said that in the General interest to avoid such a scenario.

Photo: iStock Oil prices rose on expectations a new deal to reduce the production

In early March, Russia has offered to extend the deal OPEC+, has always advocated the long-term stability of the oil market, given the positions of both producers and consumers. “We have never sought to ensure that the prices were too high and wanted to avoid a situation when prices were too low,” said Putin, Recalling that the budget is based $ 42 per barrel, “and around that number we feel quite comfortable”.

“We are in close contact with our partners in Saudi Arabia. I recently had a conversation with the President of the United States” – continued the head of state and added that all interested in the joint coordinatedgovernmental actions to ensure long-term stability of the market.

“Russia considers it necessary to unite efforts,” said the President, underlining that Moscow was not the initiator of cancellation of the transaction OPEC+. And ready to agreements with partners and in the framework of this mechanism, and to cooperate with the United States. Efforts should unite to balance the market and reduce production. “According to preliminary estimates, I think, that speech can go about decrease in the amount of somewhere 10 million barrels per day, a little less, maybe a little more,” called the figure of the President. “Of course, this all should happen partnerski”, he added. That is, the speech can go about reduction of the level of production prevailing before the crisis level of the first quarter.

“Our key task is long-term market stability in the interests of both producers and consumers”, – said the head of state. And of course, the sustainability and development of the Russian fuel and Energy complex.