Russia’s RDIF: New OPEC+ deal possible to address demand if others join

Reuters | Mar 27, 2020 at 6:06 AM

MOSCOW, March 27 (Reuters) - Kirill Dmitriev, the head of the Russian Direct Investment Fund (RDIF), believes a new OPEC+ deal to balance oil markets might be possible if other nations joined it and that countries should cooperate to mitigate the economic fallout from coronavirus.

"Joint actions by countries are needed to restore the(global) economy... They (joint actions) are also possible in OPEC+ (group of the Organization of Petroleum Exporting Countries and non-OPEC members) deal's framework," Dmitriev told Reuters in a phone interview.

Russia is a leading non-OPEC member and Saudi Arabia is a key OPEC player. A deal between OPEC and other oil producing nations to curb production to support prices fell apart earlier this month after a failure to agree how to address falling oil demand hit by coronavirus, sending global oil prices into a tailspin.

Dmitriev was one of the Russian masterminds of the original production cuts deal with OPEC.

"We are in contact with Saudi Arabia and a number of other countries. Based on these contacts we see that if the number of OPEC+ members will increase and other countries will join there is a possibility of a joint agreement to balance oil markets," he said.

Dmitriev declined to say who the new deal's members should or could be.