After long negotiations at dawn on Friday, OPEC and its partners, with the exception of Mexico, agreed to reduce global production in May and June by up to 10 million barrels per day. Mexico considered that what was requested was exaggerated (reducing production by 400 thousand barrels per day) compared to other countries. The United States agreed to help Mexico achieve its share of the cut in order to allow an agreement to be reached and stem the price drop. On Saturday, however, the G20 energy ministers did not reach an agreement on reducing production.
Prior to the meeting, the Russian “Interfax” news agency quoted Energy Minister Alexander Novak as saying that the United States is ready to reduce its oil production between 2 and 3 million barrels per day. Novak said he had spoken to his US counterpart up to six times last week.
He explained in an interview with “Russia 1” channel that “out of this unfavorable situation in the global oil market, it will not be before the end of this year at best,” expressing his expectations that the final (OPEC +) agreements will be signed in the next few days .
“Nord Stream 2” continues
The Russian Energy Ministry considered that the “Nord Stream 2” project would be completed “for sure”. “This is a commercial project that is being implemented by several international companies,” Novak said. Given the huge amount of investment that has been made so far (about 5 percent of the total cost of the project has not yet been implemented) I think this project will be implemented. ”
And at the end of 2019, US President Donald Trump signed a law that included a text on sanctions on “Nord Stream 2”, which targeted companies that agreed to participate in this project. Against this background, the Swiss company “Allseas”, which installed the transmission lines, stopped its work and recalled its ships participating in the project.
Moscow is considering banning the import of gasoline
The Russian Energy Ministry is studying a plan to ban gasoline imports for a period of six months, with the aim of supporting domestic oil refineries, Novak announced.
The proposal includes a six-month ban “in order to maintain the domestic oil refining industry, and above all to preserve jobs,” the energy minister said.
The minister pointed out that the volume of oil products consumed at gas stations in Russia in the first weeks of quarantine decreased by 30 percent.