Russia Agreed to Cut Oil Production

Russia agreed to reduce oil production under the OPEC + deal by 14 percent from the level of the first quarter of 2020.  TASS reported with reference to the of the Ministry of Energy’s representative. It is noted that Russia can take such a step in the event of a proportional decrease in other countries of its share in total production. “Yes, we are ready to reduce by 1.6 million barrels per day, I confirm,” the source said. US President Donald Trump, in turn, refused to negotiate the oil production reduction with other countries. As earlier, there’s a threat in the oil transaction breakdown between OPEC and Russia informed with a letter from Iranian Oil Minister Bijan Namdar Zangane to the chairman of the OPEC conference, Mohammed Arkab. On April 7, a Russian source stated there was no compromise between Russia and Saudi Arabia on the issue of cuts volume,  although the parties agree that a total of about 10 million barrels should be removed from the market. Also, both main participants in the price war require American manufacturers’ inclusion into the deal. The meeting in OPEC + format will be held on April 9. In addition to Russia, seven major oil exporters outside the association received an invitation to the meeting. The United States and Canada, whose participation in the agreement to reduce production could be key, were not invited. Also, Argentina, Brazil, Norway, Colombia, Egypt, Indonesia, Trinidad and Tobago can take part in the negotiations in a videoconference format. April 10 should be the meeting at the energy ministers of the G20 level. Saudi Arabia is about to announce it. The negotiators do not exclude that after  OPEC + preliminary agreement they will be able to convince the United States to join the reduction in production.