Russia Says No On US Suggested Oil Cuts

Russia has rejected suggestions that a market-driven fall in oil production from US shale producers could count towards the country’s share of a potential global crude reduction deal, reported The Financial Times. 

Russia, Saudi Arabia, and other major oil producers including the US are set to hold meetings on Thursday and Friday, April 9 and 10, in an attempt to hash out a deal to cut global oil production, after a dramatic fall in demand because of the coronavirus pandemic caused prices to drop by around 50%.

But Moscow has said it would only agree to a deal if the US also accepts mandated curbs on its production, and on Wednesday dismissed an idea that a natural reduction of unprofitable shale production because of the lower oil price could account for the country’s share of cuts.

“These are completely different reductions. You compare the general reduction in demand with reductions for stabilising world markets. It’s like comparing length and breadth,” said Dmitry Peskov, spokesman for president Vladimir Putin.

Full Content: Financial Times

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