OPEC+ committee recommends not changing oil production quotas

Photo: © RIA Novosti/Maxim Bogodvid

Photo: © RIA Novosti/Maxim Bogodvid

The OPEC+ ministerial meeting today decided not to change oil production quotas. They will not be reduced or raised.

As explained by Russian Deputy Prime Minister Alexander Novak, who oversees the fuel industry, the decision taken takes into account all the current circumstances in the market. On the one hand, the fact that many countries are moving into recession, which means that fuel consumption will fall, on the other hand, one of the largest consumers – China – is coming out of the coronavirus and could warm up demand.

Novak called the current price level acceptable. Separately, he touched on the situation with Russian oil. According to him, despite the European embargo and other sanctions, production and exports from Russia remain stable, Moscow managed to find new buyers.

In the meantime, the Ministry of Finance announced today at what price Russian oil is being sold. Thus, the Urals grade in January fell even more in relation to the North Sea Brent. In January, a barrel of our oil cost an average of $50, which is 40 percent cheaper than Brent. Urals comes at such a discount, among other things, due to sanctions that have complicated logistics.

Source: Ren

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