Russia may reduce oil production by 1.5 million barrels per day

US, WASHINGTON (ORDO NEWS) — Russia, if agreements are reached to stabilize the global energy market at a meeting of OPEC + countries, could reduce oil production by 1.5 million barrels per day. This statement was made on Friday by The Wall Street Journal , citing sources.

According to them, the meeting, which is expected to be held in the form of a videoconference, will discuss the possibility of a collective reduction in production by 10 million bps. As part of this deal, the newspaper points out, Saudi Arabia may reduce production by 3 million bpd compared to the current level, while the Persian Gulf and Russia will cut production by 1.5 million bpd each. Oil exporting countries that are not members of OPEC or OPEC +, including the United States, Canada and Brazil, will reduce production by 2 million bpd, the publication indicates.

The meeting of OPEC + countries on the oil market with US participation will be held April 6 in a video conference format. Both Moscow and Washington are in favor of a collective reduction in production by 10 million bpd, while Russia proposes to take the production volume of the first quarter of this year as a base level.

The OPEC + deal, which was held at the agreement of Russia and Saudi Arabia for three years and allowed to stabilize oil prices at $ 60 per barrel by limiting production, was completed on March 31, 2020. It was not possible to extend it due to the opposing positions of the two largest participants: Moscow proposed to extend the agreement on the same terms and only for the second quarter of 2020, and Riyadh – to increase the reduction by 1.5 million barrels per day until the end of the year. The termination of the agreement led to a sharp drop in oil prices, which was exacerbated by a decline in global demand due to the pandemic of the disease caused by the new coronavirus.

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