Market and product

Plans by the Organization of the Petroleum Exporting Countries (OPEC) to crank up its oil production have led to additional pricing shocks on the market, Russian Deputy Energy Minister Pavel Sorokin told RBC TV on Friday.

“We have already experienced quite a big shock due to the coronavirus,” he said. “However, we could have avoided additional shocks... from the OPEC countries statement that they are boosting production.”

He also said that measures to contain the spread of the coronavirus have led to a decline in oil demand in the United States, Europe and China by around 15-20 million barrels per day.

Sorokin added that, if oil prices remain at $25 per barrel for two to three years, this would create “big problems”, while saying that Saudi Arabia has offered its oil at a discount in order to increase its market share. - Reuters-