Russian and US Presidents Vladimir Putin and Donald Trump had a telephone conversation and discussed a number of pressing issues, in particular, the situation in the global oil market. This was reported by the Kremlin press service.
The parties also exchanged views on the agreement being worked out under OPEC + to reduce production volumes to stabilize world oil prices.
“Donald Trump informed about his contacts with the leaders of several oil producing countries. It was agreed to continue Russian-American consultations on this topic, ”the report said.
In addition, the leaders touched upon issues related to measures to combat coronavirus infection, as well as relevant aspects of bilateral relations, including cooperation in space.
On the night of Friday, April 10, Vladimir Putin also had a telephone conversation with Donald Trump and King of Saudi Arabia Salman bin Abdel-Aziz Al Saud.
The heads of state, as reported in the Kremlin, discussed the situation in the oil markets, including taking into account negotiations at the extraordinary ministerial meeting in OPEC + format, as well as the upcoming video conference of G20 energy ministers.
“The mood was confirmed to coordinate actions to stabilize the situation in the global oil trade and minimize the negative impact of volatility of oil quotes on the world economy,” the report said.
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As the press secretary of the Russian leader Dmitry Peskov specified, during the negotiations the results of many hours of communication between the energy ministers were discussed.
“President Putin very positively evaluates the agreed document ... which has become a compromise of 22 countries,” Peskov said.
In turn, Trump, speaking at a press conference, called the conversation the day before “good,” and expressed the view that OPEC + is close to an agreement to reduce oil production. He also noted that the United States is not interested in low oil prices, as this will entail a global recession.
Earlier, most countries - exporters of raw materials approved a plan that involves reducing oil production from 43.8 million to 33.8 million barrels per day from May to June 2020. The main volumes of reduction will fall on Russia and Saudi Arabia - 2.5 million barrels per day, TASS reported with reference to a communiqué following the negotiations of OPEC + states. However, at that time Mexico refused the proposed conditions.
However, already in the afternoon on April 10, Mexican President Andres Manuel Lopez Obrador also announced that he had agreed with Trump to reduce oil production.
“We agreed to reduce production by 100 thousand barrels per day. The United States promised to further reduce production by 250 thousand barrels per day to help Mexico, ”RIA Novosti quoted him as saying.
Stanislav Mitrahovich, an expert at the National Energy Security Fund, a lecturer at the Financial University under the Government of Russia, said in an interview with RT that the United States did not officially join the deal, remaining “free riders."
“Stowaways are those states that do not participate in OPEC +, but at the same time export oil. The United States cites the fact that they do not participate in the transaction, because they have legal instruments to limit production. This, on the one hand, is formally correct, on the other hand, there is a certain deceit in this. If desired, laws can be changed, ”he said.
At the same time, the expert added that even without a deal, countries, including Russia, would have to reduce production volumes in a few months, including due to the filling of storage facilities.
Director of the Energy Development Fund Sergei Pikin, in an interview with RT, said that the deal under discussion was an attempt to find a new market consensus in which both producers and consumers would be comfortable.
“Of course, to get out of a situation where we have a global serious drop in demand, which has never happened in history - according to various estimates, from 20% to 30% - without urgent surgical operations, such as the most serious reduction in production, it’s just impossible. There is a chance that joint efforts can achieve a new equilibrium that would suit both producers and consumers. This is about $ 40 + per barrel. Then it will be good for everyone, ”said the analyst.
According to Pikin, such a price level will not be unnecessarily high for buyers, and manufacturers will not only be able to maintain production, but also continue to invest in the development of the industry.