Russian President Vladimir Putin has said his country is ready to work with the Trump administration to halt the freefall of oil prices. His comments come after a phone call with President Trump earlier this week.
Putin also noted that the daily oil output should be cut by around 10 million barrels, as there is lower demand due to coronavirus. Oil prices went started dwindling after OPEC+ countries disagreed on production cuts, with Saudi Arabia refusing to lower the output.
With an ongoing “price war” between Russia and Saudi Arabia driving prices even further down, US president Trump said on Thursday that “it would be great” if the two countries could make a deal to limit production.
Putin had already spoken to Trump by phone earlier this week, and on Friday announced that he is ready to cut production by 10 million barrels per day.The Russian leader said that moving forward, Moscow would be comfortable with a price of $42 per barrel, roughly $10-15 higher than current levels.
Oil prices jumped prior to Putin’s Friday announcement, after Trump spoke of a pending deal.
No talks between Moscow and Riyadh have yet taken place, Kremlin spokesman Dmitry Peskov said on Friday. However, non-OPEC member Azerbaijan announced that the petroleum bloc and its allies will hold discussions on Monday aimed at restoring “balance to the oil market.”
Saudi Arabia, ramped up its production on Wednesday to a record high of more than 12 million barrels per day, after previous OPEC+ production cuts expired at the end of March. During a televised meeting with Energy Minister Alexander Novak Putin said the Saudi crown is flooding the market to force competing shale oil producers out of business, among them the US and Russia.
Novak noted that he doesn’t know when the world’s plummeting demand for oil will finally bottom out.
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