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Russia wants enlarged new deal with OPEC to tackle oil collapse

There might be a new turn in sight as Russia pushes for a new OPEC+ deal to balance oil markets.

On Friday, Kirill Dmitriev, head of Russia’s sovereign wealth fund said this might be possible if other countries bought into this to cushion the economic fallout from coronavirus.

A pact between the Organisation of the Petroleum Exporting Countries and other producers, including Russia (known as OPEC+), to curb oil production to support prices fell apart earlier this month, sending global oil prices into a tailspin.

“Joint actions by countries are needed to restore the(global) economy… They (joint actions) are also possible in OPEC+ deal’s framework,” Dmitriev, head of the Russian Direct Investment Fund (RDIF), told Reuters in a phone interview.

Dmitriev and the Energy Minister Alexander Novak were Russia’s top negotiators in the production cut deal with OPEC. The existing deal expires on March 31.

“We are in contact with Saudi Arabia and a number of other countries. Based on these contacts we see that if the number of OPEC+ members will increase and other countries will join there is a possibility of a joint agreement to balance oil markets.”

Details later…

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