Published on : 04/03/2020 – 22:52Modified : 04/03/2020 – 22:52
As the oil market is severely constrained by the coronavirus pandemic, Vladimir Putin says he is ready to work with the United States and Saudi Arabia to cut production to balance prices.
Russian President Vladimir Putin said he was in favor of reducing oil production on Friday, April 3, in cooperation with the United States and Saudi Arabia, adding that he envisaged a reduction of 10 million barrels per day.
“We are ready for an agreement with our partners under the ‘Opep +’ mechanism, and are ready to cooperate with the United States on this matter,” he said during a videoconference meeting with his minister. of Energy transcribed on the site of the Kremlin.
“According to preliminary estimates, I think it is possible that there is a decrease (in oil production) of around 10 million barrels per day. Maybe a little less, maybe a little more, “he said. “I think it is necessary to join efforts to balance the market and reduce the production” of oil, added Vladimir Putin, saying that Russia was in close contact with its Saudi partners.
OPEC confirmed Friday the holding of an exceptional meeting of its members and allies Monday, April 6, in the aftermath of tweets from US President Donald Trump about possible cuts in Saudi and Russian production, of the order of ten million barrels per day. These tweets have boosted crude prices.
The unknown American
One of the unknowns in the current discussions concerns a possible reduction in American crude oil production, whether voluntary or constrained by the fall in prices, which compromises the profitability of many shale oil deposits.
“We are going to get out of this, we are going to get our energy sector back on its feet,” Donald Trump simply told reporters before the meeting with oil companies started on Friday. “The United States must contribute with shale oil,” said an OPEC source.
In Canada, the Premier of Alberta said Thursday that the province is ready to join a multilateral pump reduction agreement.
The black gold market is still under pressure from sluggish demand due to restrictions on the transportation of people and goods around the world to fight the spread of the Covid-19 pandemic.
At the same time, the supply remains overabundant amid a price war between Riyadh and Moscow.