Russia promises to increase oil production amid collapse in prices
Russian oil workers were ready to sever relations with OPEC and were ready for a drop in oil prices to $32 per barrel and below. Such a situation gives the country "opportunities that need to be properly assessed," a senior oil industry official who took part in preparing Russia's position ahead of talks with OPEC told TASS.
"Yes, they assessed it. It's normal to look at different scenarios," he said, when asked if the Russian side had calculated the drop in oil prices to $32 per barrel and below. According to him, Russian companies can start increasing production before April. "We can do it even before. We have to look into it," he said.
For Russia, in his opinion, the current situation provides "opportunities that need to be properly assessed." "We need to focus on projects which give maximum efficiency for the national economy," he concluded. Another high-ranking official confirmed the idea that such an outcome of negotiations with OPEC had been considered.
Amid the collapse of oil prices after talks between the oil produces in Vienna failed, the Russian rouble fell sharply against the American and European currencies. Thus, the dollar exchange rate on the international Forex market exceeded the mark of 75 rubles. The euro rate has risen above 85 rubles. Both foreign currencies were last time at this level in 2016.
Oil is falling after OPEC countries failed to agree on additional oil production cuts in the face of falling demand due to coronavirus. OPEC proposed to reduce production by 1.5 million barrels per day by the end of this year. However, Russia opposed the proposal. In response, Saudi Arabia announced a record 20-year discount on its oil - up to $8 per barrel - and began to increase production.