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Moscow rejects a recommendation to cut oil production in response to coronavirus

UNITED STATES (OBSERVATORY NEWS) — Russia, an ally of OPEC oil exporting countries, rejected on Thursday a technical committee’s recommendation to cut further production to reduce the decline in prices due to the emerging Coronavirus, according to media.

During this extraordinary meeting of OPEC countries and their ally Russia in Vienna, Moscow refused to support a proposal to reduce oil production by an additional 600,000 barrels per day, sources told the Russian TASS news agency and the Wall Street Journal.

The agency and the newspaper said Russia had requested the extension of the negotiations.

The Wall Street Journal reported that Saudi Arabia wanted to obtain an additional reduction of between 800 thousand and one million barrels per day and offered a settlement to reduce 600 thousand barrels, but it did not succeed.

The new Corona epidemic has caused concern among a number of oil producing countries, especially those that rely on Chinese economic growth. Beijing buys more than two-thirds of its crude needs from OPEC member countries and allies.

Saudi Arabia is the first oil exporter to China, followed by Russia.

After falling more than 15 percent since the beginning of the year, oil prices rebounded somewhat, awaiting recommendations from the OPEC meeting and its allies.

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