Russia is ready to reduce oil production, but on one condition

US, WASHINGTON (ORDO NEWS) — Russian President Vladimir Putin said that a reduction in world oil production by about 10 million barrels per day is possible. However, Bloomberg found out that Moscow has a tough condition.

Russia may reduce oil production by 10%, but under a certain condition, writes the business information agency Bloomberg.

According to Bloomberg, Russia agrees to reduce oil production per million barrels per day only if the United States joins the deal.

Russian President Vladimir Putin said that a reduction in world oil production of about 10 million barrels per day is possible and the country is ready to participate in this “on a partnership basis.” At the same time, Putin does not agree that Russia would take on more than one tenth of global reductions, said a source familiar with the situation, Bloomberg.

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The Agency draws attention to the fact that the reduction in Russian production by about 1 million barrels per day will be about 10% of the average daily production in the country, which in March reached almost 11.3 million barrels.

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According to another source, the parties to the deal may demand a reduction in oil production in Russia by 1.5 million barrels, but the Kremlin will not be happy with this scenario.

Disruption of the OPEC transaction +

In mid-March, OPEC + member countries did not agree on a change in the parameters of the oil production deal. In particular, Russia proposed to preserve the existing volumes of oil production, and Saudi Arabia demanded to lower the indicators.

The failure of the OPEC + deal between Russia and Russia led to a price war in the oil market, as a result of which on March 18 the cost of fuel fell to $ 24 per barrel – the level of 2002.

The idea to reduce global oil production by 10 million barrels per day in response to a decline in demand due to the coronavirus pandemic was originally voiced by U.S. President Donald Trump earlier this week, later Putin supported the initiative at a meeting with major Russian producers.


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