Russia is not ready to cut oil production in excess of existing quotas

According to him, Russia is ready to prolong the existing agreement until the end of the 2nd quarter of this year. The parties to the transaction have informed the Minister of energy Alexander Novak, having with them the informal consultations. While official talks between OPEC members+ has not yet started.

oil Prices fall on OPEC uncertainty of the future+

the Ministers of the countries of the OPEC oil cartel meeting in Vienna on March 5 approved a further reduction of oil production by 1.5 million barrels per day before the end of 2020 due to the impact of the epidemic of the coronavirus in the oil market.

the Share of the countries of cartel in the planned reduction of 1 million barrels per day and non-OPEC countries is 0.5 million barrels per day. Since the beginning of this year OPEC+ removes from the market 1.7 million barrels per day.

In the total amount of the decline in oil production among the countries outside OPEC, Russia’s share more than half. Currently the quota of our country – 300 thousand barrels a day. It can be assumed that the parties to the transaction expect to maintain these proportions in the future, but it does not suit Russia.

Photo: Video: Novak and OPEC Secretary General greeted the feet of coronavirus

According to experts, in this case the Russian companies will have to reduce production at the existing deposits up to a complete standstill, and this can lead to numerous negative consequences for the industry. However, with oil prices for Russia are at a comfortable level.

the cut-off Price, which in the budget of our country received oil revenues in 2020 is 42.4 per barrel of Urals oil, the average cost of which in February was 54,24 per barrel. As emphasized by the Minister of Finance Anton Siluanov, the Russian budget is protected from fluctuations in oil prices and all costs will be funded even in the case of a drop in prices up to 30 dollars.