Kremlin considers OPEC + agreement successful

US, WASHINGTON (ORDO NEWS) — The Kremlin considers the OPEC + agreement to be successful, which halted the collapse in prices and overproduction in global energy markets.

“This deal is designed for a certain perspective, and the effectiveness of this deal also manifests itself in the future,” Russian presidential spokesman Dmitry Peskov told reporters.

“Largely thanks to this deal, it is possible to avoid a completely negative and landslide development of the situation in the energy markets,” he said.

According to the latest estimate of the Ministry of Energy of the Russian Federation, the OPEC + transaction has earned, and Russia has reached the target reduction in production of 2 million barrels per day. This agreement removed excess 14-15 million b / s from the market. According to the forecast of the Ministry of Energy, in June-July in the global oil market, it is possible to enter the market balancing.

The oil of the European standard Brent at auction in London on May 26 grew by 1.5% to $ 36.1 per barrel by 14:10 GMT according to stock data. American benchmark West Texas Intermediate (WTI) rose 1.2% to $ 34.11 per barrel.

The Organization of Petroleum Exporting Countries and its allies, known as OPEC +, uniting 23 countries, cut supplies by a record 9.7 million barrels per day from May 1 to support the market. They decided to join another 9 countries that had previously avoided a reduction in production. In this case, the reduction can reach 15-20 million barrels per day.

The supply data indicate the start of confident implementation of the OPEC + agreement. The threat of market oversupply and oil storage overflow is weakening.

The price of oil in the markets fell by 2 times at the end of March 2020 after the termination of the previous OPEC + agreement. The price of Brent reached a 21-year low below $ 16 in April, and the price of contracts for the supply of American oil reached negative values. As the pandemic declines and fuel consumption in the world grows, oil has more than doubled in price, supported by OPEC + cuts.

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