the Deputy Minister said that freezing the price of oil were made possible due to the specifics of trading. All the stores in may was contracted, although physically and was not filled. On the last day of trading of the may futures their owners tried to get rid of them at any price.
Sorokin noted that the fall in oil prices to $ 20-30 per barrel was imminent. In terms of the enormous glut of crude in April – about 30 million barrels per day, the market would not have saved a reduction of 3-5 million barrels per day, which failed to negotiate the OPEC members+ in early March. Now, the joint efforts of the OPEC+ and the other countries that joined the reduction will be removed from the market to 16 million barrels per day. According to the Deputy head of the energy Ministry, the deal OPEC+ no problem fully balance the market, it just needs to delay the time of completion of storage, to avoid the final collapse of prices. “The new collapse of the market is not in anyone’s interest, neither the sellers nor the buyers. In the end, this would lead to price spikes above $ 100 per barrel, but without the ability to recover production,” – said Sorokin.
the energy Ministry expects that the decline in commodity reserves of oil will start in the 3rd quarter of this year, when the market formed its slight deficiency. Pavel Sorokin made a partial execution by all parties to the transaction OPEC+ conditions the decrease in production, due to the large presence in some countries foreign companies. He stressed that to cut production is necessary as soon as possible, and Russia will try to comply with the terms of the transaction in the shortest possible time.
