The entire world needs the OPEC+ deal on cutting oil production as without it global economy would be on the brink of a chaos in oil prices, Kremlin Spokesman Dmitry Peskov said.
“Basically, the whole world needs it. That’s because global economy will be on the brink of an uncontrolled chaos in prices on energy supplies unless there is such a deal,” Peskov told “Moscow. Kremlin. Putin” program on Rossiya-1 TV channel.
Russia is not the only country concerned over oil prices, Peskov noted. “Let’s think, the election campaign is now underway in the United States. 10 mln people could lose jobs if shale oil companies faced bankruptcy. That’s why, of course, it’s a priority for the US to care about this economic sector,” he said.
OPEC+ deal
On Friday night, OPEC+ countries agreed to cut oil production by 10 mln barrels per day in May-June. Production restrictions will stay in place until May 2022, but to a lesser extent. According to the OPEC + plan, each of the 23 participating countries should reduce production by 23% in comparison with the level of production of October 2018. The exceptions are Russia and Saudi Arabia, which will reduce production on equal terms from 11 mln barrels per day to 8.5 mln barrels per day. The final conclusion of the transaction was prevented by the position of Mexico, which refused to reduce production by the proposed 400,000 barrels per day, but agreed to do it only by 100,000 barrels per day. Later, according to President of Mexico, the country agreed with OPEC+ and the United States that the real reduction in production in the country would amount to 100,000 barrels per day, while another 250,000 barrels per day would be cut by the US.
The talks continued on Friday in the format of a webinar among G20 energy ministers. According to Russian Energy Minister Alexander Novak, the total oil output cut by OPEC+ and some their partners in G20 would be 15 mln barrels per day.
Source: TASS
