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Russia seeks constructive talks on stabilizing global oil market

According to Kremlin Spokesman Dmitry Peskov, under the current conditions Russia’s Saudi Arabian partners have introduced an unprecedented discount and boosted oil production

MOSCOW, April 5. /TASS/. Russia is set for constructive negotiations aimed at stabilizing global energy market, Kremlin Spokesman Dmitry Peskov said in an interview with "Moscow. Kremlin. Putin" TV program on Rossiya-1 TV channel.

"Russia did not back the termination of OPEC+ deal. President [Vladimir] Putin and the Russian side in general are determined for a constructive negotiating process, and there is no alternative to it in terms of stabilizing international energy market," Peskov said.

According to Peskov, under the current conditions Russia’s Saudi Arabian partners have introduced an unprecedented discount and boosted oil production. This led to a situation when "all oil storage facilities in the world" could be filled.

"Tankers are already used not for shipping oil but as floating canisters. <...> Finally, we will just get an absolutely minimum oil price, which is not advantageous for any country," Peskov noted.

The OPEC + deal, which has been based on the agreement between Russia and Saudi Arabia for three years and allowed to maintain oil prices at $ 60 per barrel by limiting production, ceased to work on March 31, 2020. It was not possible to extend it due to the opposing positions of the two largest participants: Russia suggested extending the agreement on the same terms and only for the second quarter of 2020, and Saudi Arabia - to increase the reduction by 1.5 mln barrels per day until the end of the year. The termination of the agreement led to a sharp drop in oil prices, which was exacerbated by the falling global demand due to the coronavirus pandemic.

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