Putin proposed OPEC to cut oil production at 10 million barrels per day

Путин предложил ОПЕК+ сократить нефтедобычу на 10 млн баррелей в сутки

The President of Russia considers it necessary to reduce oil production by OPEC countries+ in the quarter. In the first quarter of 2020, they produced an average of 40 million barrels per day.

Vladimir Putin suggested that the countries-participants of OPEC to cut total oil production by 10 million barrels per day from the level of the first quarter of 2020. “Of course, all of this should happen? partnership”, – said Putin on Friday, April 3, at the meeting on the situation on the world oil market. According to him, Russia does not seek to ensure that oil prices were “too high” and wants to avoid that they were “too low”. The head of the Kremlin called a comfortable price for Russia is $ 42 per barrel, based on the price converted into the Russian budget.

Putin’s press Secretary Dmitry Peskov told journalists that the meeting was attended by members of the leadership of the Russian government, the presidential administration of the Russian Federation, first Deputy Prime Minister Andrei Belousov, Deputy Prime Minister Yuri Borisov, the assistant to the President Maxim Oreshkin, energy Minister Alexander Novak, Finance Minister Anton Siluanov, Central Bank Chairman Elvira Nabiullina and the heads of the major oil companies: “LUKOIL” Vagit Alekperov, “Gazprom oil” Alexander Dyukov, the “Tatneft” nail Maganov, “Rosneft” Igor Sechin. Was also attended by CEO of RDIF Kirill Dmitriev”.

The failure of the transaction OPEC+

Putin also said that the reason for price fall – out Saudi Arabia from the transaction OPEC+, the increase of production and the willingness of this country to provide discounts on oil, to “get rid of the competition, producing shale oil”. He noted that Russia is such a purpose not intended, and wants to consider the interests of all partners.

April 1, terminated the deal OPEC+ for the reduction of oil production. Since then, oil prices on the world market fell by more than half. The price of Russian Urals oil dropped to $ 10. Average daily oil production OPEC+ in the first quarter amounted to about 40 million barrels, Russia have produced about 11 million.

Members of OPEC+ includes 13 member States of the Organization of countries-exporters of oil (OPEC) and Russia, Kazakhstan and Azerbaijan.