Russia finds it too early to consider additional steps in the oil market to counteract the sharp fall in oil prices. According to the Kremlin, the impact of the restriction on production that oil cartel OPEC, Russia and other oil-producing countries have recently agreed will have to be considered.
This production reduction of nearly 10 million barrels per day will take effect on 1 May. Moscow first wants to wait and see what impact this will have on the oil market that is struggling with oversupply and a sharp fall in demand due to the corona crisis. Oil prices are now at their lowest levels in decades.
On Monday, the price of a barrel of US oil for delivery even turned negative in May. This means that oil companies paid traders to purchase oil to avoid having to stop oil production in certain fields and incur costs. It was the first time that the US oil price had declined.