Saudi Arabia has demanded from Russia new concessions on oil

Oil a truce between Russia and Saudi Arabia two weeks before OPEC talks+ were under threat.

This writes Hvilya with reference to Finanz.ru

Cаудовская Аравия потребовала от России новых уступок по нефти

Position in oil production of Moscow and Riyadh again dramatically diverged. Russia intends to increase oil production from July, said the publication Bloomberg, Russian officials and industry representatives.

According to the agreement, OPEC+ from may to July should cut oil production by nearly 9.7 million barrels per day, then until the end of the year – 8 million barrels a day through may 2021 to 6 million barrels per day.

Meanwhile, Russia intends to increase oil production by 500 thousand barrels per day from July 2020 and another 500 thousand barrels per day from January 2021. Such a prospect is not satisfied with partners in OPEC, which propose to extend the quotas before September.

Note that Saudi Arabia, which has reduced oil production to 1.3 million barrels a day, the deal with OPEC+ and 1 million barrels a day on their own initiative, are unhappy with the current level of oil prices. Despite the fact that the price of Brent crude oil has returned to the level of March and is in the range of 36 dollars per barrel, the energy market is still too much oil. Mining exceeds the current demand for oil in the 7-12 million barrels per day.

Russia is not ready to radically reduce oil production on the fear of losing part of the reserves of energy resources in the complete shutdown of the oil wells. Given the state of wells, the method and quality of oil produced, most of the wells will be impossible to run.

Negotiations OPEC+ scheduled for 5 June 2020. It is expected that they will begin with meetings of the technical monitoring Committee of the OPEC+ (JTC), which provides advice and expert support to the Ministerial Committee OPEC+. June 8 will be a meeting of the Ministerial monitoring Committee (JMMC), June 9, will meet the Ministers of OPEC, June 10 — OPEC Ministers+.