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Russian authorities are considering the possibility of exit from the OPEC +

Fri Dec 27, 2019
watermark Economic news

The head of the Ministry of Energy of the Russian Federation, Alexander Novak, said that the Russian authorities will soon consider the issue of a possible withdrawal from the OPEC+ agreement.


Despite the effectiveness of the deal to reduce global oil production, A. Novak believes that Russia will need to gradually make a decision to exit in order to maintain market share and enable Russian companies to implement their promising projects.


The minister also noted that the market responds very well to such agreements to reduce production: volatility has decreased, investment in the industry has returned, and current oil prices satisfy both producers and consumers.


At the moment, the agreement provides for a reduction in production by 1.2 million barrels per day from the level of October 2018 until the end of 2019 and by 1.7 million barrels – in the first quarter of 2020.


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