Russian President Vladimir Putin said on Friday that the oil prices drop could be explained not only by the coronavirus pandemic, but by Saudi Arabia's withdrawal from the OPEC+ deal, its subsequent production increase and the declaration of readiness to offer discounts
MOSCOW (Pakistan Point News / Sputnik - 03rd April, 2020) Russian President Vladimir Putin said on Friday that the oil prices drop could be explained not only by the coronavirus pandemic, but by Saudi Arabia's withdrawal from the OPEC+ deal, its subsequent production increase and the declaration of readiness to offer discounts.
Putin expressed the belief, at a meeting on global energy markets, that the oil prices drop was chiefly triggered by the coronavirus pandemic and the subsequent demand decrease.
He added that the significant decrease in the oil prices could also be explained by Saudi Arabia's exit from the OPEC+ deal, "production increase and the simultaneous announcement, by our Saudi partners, to even offer oil discounts."
"This is understandable, as this may be related to our Saudi partners' attempts to get rid of competitors producing the so-called shale oil. To do this, the price should be below $40 per barrel. In this sense, they are certainly fulfilling their goal," Putin said, adding that Russia does not need this.
"We have never had such a goal because, as I have already said, we elaborate our budget keeping $40 per barrel in mind," the president explained.
