Vladimir Putin is going to clearly show the position of the Russian Federation during the OPEC virtual meeting + and the US for the sake of the energy market and the stabilization of oil prices, I told FBA “economy today” Director of the Foundation of Historical Research “ground” Alex Anpilogov.
Russian President Vladimir Putin during the situation on the global energy markets meeting, to discuss measures to ensure the stability and development of the fuel and energy complex, declared readiness "as partners" around cut production by 10 million barrels of oil per day.
"The reduction in the 10 million barrels do not need to understand, as the reduction due to Russian, as in 2019 , the country was producing 11, 25 million barrels a day. The figures recorded at the peak of the Russian production.
Therefore, to interpret the statement of the State, assuming, the country to agree to reduce 10 million barrels of oil production, totally unacceptable ", – says head of state said the spokesman.
In this case, It suggests the expert, we can talk about, that under the new deal, composed of members has not yet been clearly defined, all countries reduce oil production for these 10 million barrels per day.
"Last year showed, that the whole ointment produced and consumed is equivalent to 101 million barrels of oil per day. And the country, on the basis of these data, suggest it to cut production 10 %.
If we assume, that these volumes will hold all reducing energy producing countries, it turns out – in the Russian Federation accounts for about 1, 1 million barrel.
These figures are fair for all participants, but affect Russia's export, since half the oil produced is consumed internally, and the other – It goes on transport to other countries ", – He explained the director of the "Foundations".
The collapse of the OPEC deal + and to conclude new
In the beginning of March 2020 year Russia proposed to extend the deal, "OPEC-plus". but, as emphasized by the head of state during the meeting, "The situation began to develop in a different way, Another scenario ".
"The president was referring to is the reduction of oil production, rather than exports. This is due to the fact, that domestic energy consumption has decreased because of the epidemic coronavirus and measures confrontation spread of infection.
The deteriorating situation, Most likely, force Russia cut exports by 10-15%, despite, that this figure exceeds the production figures ", – said the expert.
Russian Energy Minister Alexander Novak, Reporting to Vladimir Putin, I mentioned, that "the fall in demand for petrol stations in different countries range from 30% to 70%. About 60% the world's total oil consumption is connected with transport ". Markedly falling demand for air travel and, reached around the world 60%.
Russia ready to negotiate with the United States and the countries of OPEC +
Vladimir Putin stressed, that Russia considers it necessary to unite efforts and is ready to consider reaching agreements with partners in the OPEC mechanism +, as well as to cooperate with the United States of America.
"The question arises: "Which countries will be involved in the reduction of?”. Today clearly known, that will include the Russian Federation, + State of OPEC and the United States.
Even the three largest oil producer jointly responsible only for 30% of oil produced. If we combine America and the OPEC +, you get 50%. If considered to be only the United States and member countries of OPEC +, the percentage of the expected reduction will be doubled ", – says expert.
In this case, He considers Anpilogov, President of the United States, Donald Trump and Prince of Saudi Arabia, Muhammad bin Salman Al Saud any regular discontent.
"There is an interesting feature, that is, that OPEC +, The United States and Russia have an opportunity to get treatment through other States or to join the agreement or "squeeze" them out of the market. This is justified by the inability of some countries to survive the decline in oil prices.
So I'm sure, that figure, equal 10 million barrels of, able to have an impact on many states and bring their ideas to the reduction in solidarity for the sake of the entire industry ", the expert.
Russia will take into account the interests of their partners
note, that the long-term stability of the market in the interests of producers and consumers, It is a priority task of the Russian Federation. And it is also important for the country and ensuring the sustainability and further development of the oil industry, like one of the most important sectors of the national economy.
"The reduction in the 10 barrels per day is a reasonable idea, as now, According to expert estimations, market dropped to 20%.
Therefore, the announced volume reductions - is the minimum figure, which will help to balance the cost of oil. Such an approach would also involve more oil-producing countries. I think, that the basic idea of Vladimir Putin's appeal lies precisely in this ", – He stated the expert.
Alexander Melnik
