At the OPEC+ meeting on April 9, the issue will be the correlation between the countries reducing production and the volumes produced.
On the eve of April 6, U.S. President Donald Trump did not rule out that the U.S. may reduce oil production after OPEC+.
“Saudi Arabia, which has significantly increased production, is in the best position – they will simply return to those volumes that were before March this year,” – said the expert.
He estimated that Russia will not be able to afford to cut production by more than 1 million barrels per knock because that represents 20% of the volume the country supplies to foreign markets.
“A larger reduction is simply impossible – Russia will lose not only its market share but also its income, which will become a very serious problem for the budget in the face of the epidemic,” the expert added.
In his opinion, even with the participation of the U.S. in the deal it will not be possible to remove excess oil from the market completely, because the supply is too much higher than the demand in the global terms. Thus, OPEC+ solutions will only remove a part of the problems.