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The Russian Ministry Of Energy Has Agreed With Oil Companies On Quotas For Oil Production Within The Framework Of OPEC+

The Russian Ministry Of Energy Has Agreed With Oil Companies On Quotas For Oil Production Within The Framework Of OPEC+

The Russian Ministry of Energy has agreed with oil companies to distribute quotas for oil production, and the OPEC+ deal will be implemented by Russia in full.

"All levels are brought with the agreements within OPEC+, the energy Ministry has brought about the reduction in full compliance with the terms," - said one of the interlocutors of Agency, but did not disclose the terms of the agreements.

Another source of the Agency confirmed that indeed the oil companies managed to agree on the amount of reduction. But he also did not disclose details. At the same time, the interlocutor noted that the decision was made recently.

Reuters, citing its sources, reported that the Ministry of energy last week sent an order to oil companies to reduce oil production from may by about 20% from the level of February 2020. However, TASS interlocutors familiar with the decisions taken on quotas noted that these figures do not correspond to reality.

Last week, it was reported that the Ministry of Energy sent oil companies their proposals for the distribution of production cuts in the framework of the OPEC+deal. They claimed that the Ministry suggested that companies reduce production proportionally, that is, depending on the share of a particular company in the market. But at that time, the final decision was not made, and the terms of quota distribution were also not disclosed.

Russia under the OPEC+ agreement has committed to reducing daily oil production by 2.5 million barrels - that is, almost a quarter of the current production volume. Experts warned that some companies may be forced to close part of the Fund, which will be impossible to restore. Thus, some of the inventory may be lost.

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