Putin will discuss with the oil industry the fate of the OPEC+ transaction+

Vladimir Putin will hold a meeting on April 3 with the heads of Russian oil companies and specialized officials, said Presidential press secretary Dmitry Peskov. The meeting will be held a few days before the meeting of OPEC+ April 6. According to WSJ, it will discuss a reduction in production by at least 6 million barrels per day and participation in the US transaction.

Kremlin.ru

What's happened?

The meeting of OPEC+ ministers to stabilize the oil market will be held on April 6 in a video conference format. This was reported by the authorities of Azerbaijan, who also participated in the deal with OPEC. It is expected that ministers of all countries that are not included in the cartel will take part in the meeting. It is planned to discuss a new declaration of cooperation on it. The action of the previous OPEC+ transaction on reduction of production was actually broken in early March. Officially, the agreement ceased to operate from April 1.

Today, April 3, Putin will hold a meeting with the heads of oil companies and specialized officials, Dmitry Peskov said. When asked about whether Russia will participate in negotiations with OPEC, he did not answer.

Putin has already discussed the situation on international energy markets with US President Donald Trump, in addition, the Ministry of Energy is working, he said. “You know the adverse in general atmosphere in energy markets. This is all the reasons for the president to gather with the relevant heads of departments and oil workers in order to discuss the situation, ”the representative of the president said.

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What is important to know

According to WSJ, at a meeting of OPEC member countries, the issue of reducing production by at least 6 million barrels per day will be discussed. In addition, it will be discussed on it to participate in the US transaction. On March 3, the White House will also be a meeting of the country's authorities with American oil companies. Saudi Arabia and Russia do not want to reduce prey if the United States does not join them in some form, the sources of the publication say.

A supporter of the cessation of cooperation with the OPEC was the head of Rosneft Igor Sechin. He called the collapse of the oil market in the oil market “crisis” in the oil market, and the condition for rising prices is “the output of [American] shale oil from the market”. In this case, according to the Forecast of Sechin, prices by the end of the year can increase to $ 50-60 per barrel.

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The co-owner and vice-president of Lukoil Leonid Fedun called the collapse of oil prices “catastrophic”, stating that the oilmen “could not imagine such a situation in a terrible dream”.

The Russian budget also depends on the OPEC+ transaction. Due to the fall in oil prices, the budget in April will undergo 55.8 billion rubles of oil and gas revenues, the Ministry of Finance predicts . According to the agency, in March, the total amount of undisguised oil and gas revenues has already amounted to 22 billion rubles. If oil prices will fluctuate in the region of $ 20 per barrel, the budget deficit for the year, according to the department, will be 3-4 trillion rubles. For comparison: the authorities have so far resigned 1.4 trillion rubles, or about 1.2% of GDP to fight coronavirus and support for the economy.