Russia is ready to cut oil output by 1.6 mln bpd as part of OPEC+ deal

TASS Russian News Agency | Apr 8, 2020 at 6:21 PM

MOSCOW, April 8. /TASS/. Russia is ready to reduce oil production by 14% in comparison from the level of the first quarter of 2020 or by 1.6 million barrels per day as part of the deal between the OPEC+ oil producing countries, a representative of the Energy Ministry told TASS.

"Yes, we are ready to reduce it by 1.6 million barrels per day, I confirm it," the official said. He added that this means a 14% decline in comparison with the level of production in the first quarter of 2020.

Earlier the RBC publication reported citing sources, that Russia can cut oil output by 14% in comparison with the level of production in the first quarter of 2020 (11.3 mln barrels per day). According to the sources, the new deal may also involve the U.S., Mexico, Norway, Canada and other countries with the total volume of production of 70 mln barrels per day.

On Thursday, April 9, the OPEC+ oil producing countries are expected to start talks in a video conference mode to discuss a new agreement on joint oil production reduction. Earlier President Vladimir Putin said that Russia is ready to reduce oil production but only if other oil producers on the market, including the U.S., do the same.

The OPEC+ agreement expired on March 31. After that Russia and Saudi Arabia failed to agree on the terms of its extension. The parties' withdrawal from the agreement pushed OPEC+ to increase production, which coincided with a sharp decline in oil demand caused by the coronavirus pandemic. As a result the oil price plummeted to $22 per barrel which is the sharpest fall in 20 years. In late March the partners decided to resume consultations and to invite more oil producing countries to take part in the joint activities to balance the oil market.