In an interview with Reuters late Wednesday, Pavel Sorokin, Russia’s Deputy Energy Minister, said that deeper oil output cuts don’t make sense, as there is a lack of clarity on the impact of the coronavirus outbreak on the demand for oil.
Additional quotes
The proposed extra 300,000 bpd cut asked from Russia would have doubled Moscow’s commitment to 600,000 bpd, as technically challenging.
There was no point in cutting until after everyone understood how sharply demand could fall.
We cannot fight a falling demand situation when there is no clarity about where the bottom (of demand) is.
It is very easy to get caught in a circle when, by cutting once, you get into an even… worse situation in say two weeks: oil prices would shortly bounce back before falling again as demand continued to fall.
We see the (current) market situation as predictable yet unpleasant… Market and market forces will regulate it fairly quickly.
We see the (current) market situation as predictable yet unpleasant… Market and market forces will regulate it fairly quickly.
All communication channels are open, but I cannot predict when we will meet again – this largely depends on our partners.
We are not in a price war with anyone… We are competitive. We watch the market and understand that such a situation will help the market to recover. High-cost projects will disappear.
WTI Price Analysis: Drops by $2.7 in just 60 minutes
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