Source: OPEC+ may hold video conference late May–early June

MOSCOW, May 6 (PRIME) -- Some countries that partake in the OPEC+ agreement are considering a video conference in late May or early June, and plans to hold a meeting on June 10 are still under discussion, a source in one of the OPEC+ delegations told PRIME on Monday.

“Some OPEC countries are considering holding a video conference to discuss the results of the first month of the deal’s operation in late May or in early June. They want to discuss the impact on the market, efficiency, and the risks. At the same time, the date of the planned meeting on June 10 is also under discussion. There is no certainty about that, the countries have received no invitations yet,” the source said.

Some countries of the OPEC+ format are cautiously optimistic about the deal’s impact on the market, and they think that the risks remain. The countries also discuss an initiative to include new countries into the deal, and they plan to discuss it at the upcoming conference, the source said.

Nikolai Zhuravlyov, deputy speaker of the Russian parliament’s upper house Federation Council, said that the oil price may stand at U.S. $30–35 per barrel in July–September and grow to $40 until the end of the year in line with a gradual recovery of economic activity and transportation in the world. The global economy is now passing its lowest point in demand for oil, and will start to grow soon if there are no additional shocks.

“Europe will follow China in passing the peak of the epidemic, then the U.S. will follow Europe. Europe has already started a slow lifting of restrictions, and a slow lifting of the quarantine measures in the U.S. should start in a few coming weeks. In Russia, the lockdown will be weakened starting from May 12,” he said.

The central bank’s sales of foreign currency on the open market stabilized the ruble, while the budget rule reduced dependency of the ruble on oil prices. The regulator’s softening of the monetary policy may support demand and investment as the restrictions are lifted, he said.

Alexander Pankin, deputy foreign minister, told PRIME that demand for oil will grow in line with the global economic activity. “There is no clear answer to the question about date of crude demand recovery, but it is clear that it will start as the economic activity in the leading countries goes through de-preservation and switches into growth following cancellation of the pandemic-connected restrictions,” he said.

Previously, the energy ministers of the G20 states said their countries were ready to act in solidarity to ensure the balance of interests of producers and consumers of energy resources.

“The novelty was that other countries joined the efforts of the states that formed the OPEC+, including Brazil, Norway, the U.S., and Canada. The negotiability of such a wide coalition reflects common understanding of its participants that responsible behavior is important for stabilization of the situation and creation of favorable conditions for resumption of economic growth and global trade,” he said.

He also said that there were no signs of a price fixing agreement on the oil market. The coronavirus pandemic reduced economic activity in the world and energy demand, while speculations with futures contracts and other financial instruments played their part. As a result, the market slumped and lost its balance, he said.

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