All news

Russia hopes consensus will be formalized following OPEC+ talks, says Kremlin

The document itself is very positive, noted Kremlin Spokesman Dmitry Peskov

MOSCOW, April 11. /TASS/. The OPEC+ agreement is necessary for global markets, Kremlin Spokesman Dmitry Peskov told Channel One’s Great Game show, adding that Moscow hopes that the achieved consensus on crude output reduction will be formalized in a document.

"The document itself [OPEC+ agreement - TASS) <…> is very positive and is required for global markets. We believe that experts will manage to formalize and finalize the consensus as the work with Mexican partners is underway now," he said.

The consensus on parameters of the crude production cut deal reached this week by ministers of 22 out of 23 OPEC+ states has become an unconditional success, Peskov said. "The consensus of 22 out of 23 on certain parameters of crude (output) reduction has become an unconditional success of the efforts of OPEC+ ministers. They assumed certain obligations and reached an agreement on those obligations," he said, adding certain oil producing- countries said on Friday that they are ready to slash production by a total of around 5 mln barrels per day. "This is good news," Peskov said.

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.