The barrel under the blow: the agreement OPEC+ Mexico stumbled on

video conferencing OPEC+, we recall, began on Thursday, April 9 at approximately 17-30 Moscow time, the complex negotiations lasted for 9 hours and the participants almost came to a consensus. According to Bloomberg, they agreed that in may – June production will be reduced by 10 million barrels a day from 1 July to 8 million barrels, and from January 1, 2021 to April 2022 – up to 6 million barrels. The terms of the transaction arranged for all countries except Mexico, which is categorically not agreed to reduce its production by 400 thousand barrels per day. All attempts of the other participants of the videoconference to convince Nala Rocio Garcia, who insisted on the figure of 100 thousand barrels, was not successful, and she left the teleconference. After this it was decided to continue the discussion the next day.

Sources close to the negotiations, noted that the participants expect to return to Mexico at the negotiating table, including format scheduled for April 10, a video conference of energy Ministers of the G20. But since Mexico is not the major player on the world market, we can consider a variant in which this country will refuse the resumption of the debate.

Recall that in accordance with the provisional version of the agreement of the various participants in the transaction have different cut production: Russia and Saudi Arabia of 2.5 million barrels. each, Iraq at 1.06 million, UAE by 0.72 million During the same time, OPEC+ expect that the reduction will be used for other countries: USA, Canada, Brazil, Norway.

Alexander Razuvaev, head of IAC “Alpari” believes that the agreement should be reached, since “the loser in the transaction is present, all countries are interested in the development of the market.” As for Russia, if the agreement to the published terms will be, our country, according to experts, roughly cut exports (not production) of about one-third: “This is quite a lot, but not critical. No risk trade and balance of payments of the Russian Federation”.

“All oil market participants understand hin the case of failure of the transaction the price of oil can go to $20 a barrel and it makes the commodity players to negotiate and to compromise,” he believes. Sergei Suverov, chief analyst “BKS the Prime Minister”