OPEC and its Russia-led non-OPEC allies could push Brent Crude prices back to $60 a barrel. This is according to Lukoil.
Last week, OPEC’s leader Saudi Arabia was said to be asking members of the OPEC+ group. The request is to consider an additional collective cut of 1 million bpd.
The Organization of the Petroleum Exporting Countries and its partners will meet in Vienna on March 5-6. They are to discuss additional steps to support the oil market as the spread of the coronavirus risks hurting demand.
OPEC initially called for a cut of 600,000 barrels per day (bpd) to prop up prices. This is in addition to existing cuts of 1.7 million bpd which are expected to be extended.
Over the weekend Russian President Vladimir Putin suggested that Moscow will continue to play ball and cooperate with OPEC, although it sees current oil prices as “acceptable.”
Speaking to Reuters, Lukoil’s Vice President Leonid Fedun said that a collective OPEC+ cut of between 600,000 bpd and 1 million bpd would be sufficient to push Brent back up to $60 a barrel.
The comments of a top executive from Russia’s second biggest oil producer suggest that Russia will continue its cooperation with OPEC.
“We are ready to cut [our oil production] as much as we are told to. Better to sell less oil but at a higher price,” Fedun told Reuters.
On Monday, the executive told reporters he expects the OPEC+ group to reduce more than 1 million bpd of their collective production, with Russia cutting its output by 200,000 bpd-300,000 bpd.
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