Translated material
Russia did not increase oil production after the expiration of the transaction with OPEC
Russia does not plan to increase oil production following Saudi Arabia after the formal end of the OPEC+ April 1 agreement. In a situation of lack of demand, this is meaningless, the Russian official explained to Bloomberg.
Until now, the Russian authorities have given other signals: in March, Minister of Energy Alexander Novak said that Russia could increase the production of 200-300 thousand barrels in a short term and 500 thousand barrels a day in the future. The Saudis reported that in April they would increase oil production to 12.3 million barrels per day - this is 2.6 million barrels per day higher than March 2020 (9.7 million barrels) and more even the maximum stable level of prey.
According to the results of March, oil production in Russia increased by 3%. The aggregate production of OPEC in March almost did not grow .
Although Russia denies that he is going to enter into negotiations with Saudi Arabia, an application for refusing to increase production gives the market a weak signal of progress in a stop of a price war, writes Bloomberg. The price of oil Brent, which was omitted below $ 22 on Tuesday, today holds at a level above $ 25 per barrel.
On the evening of March 31, US President Donald Trump said the American authorities will meet with Saudi Arabia and Russia in order to stop the historical drop in oil prices. According to him, he has already discussed this issue with Russian President Vladimir Putin and Crown Prince of Saudi Arabia Mohammed Ben Salman. “They will get together, and we will see what we can do,” Trump said.
Read also Black April: the oil market is preparing for the worst month in history and prices for $ 10
Goldman Sachs, however, predicts that no agreement on the restriction of production will help the market recover - it sagged too seriously. The main energy analyst in Energy Aspect Amrit Saint says that both Russia and Saudi Arabia will be forced to reduce production not because there is an agreement, but because of market forces-accumulated oil is simply nowhere to put.
Analysts predict that April 2020 will become the month of a historical fracture in the oil market: it will enter during an unprecedented reduction in demand that promises to change the industry for many years. Daily consumption in April will fall by 15–22 million barrels compared to the usual 100 million, and the price of oil Brent can fall to $ 10. We wrote more about this here .