Source: Some states want to start cuts under OPEC+ deal before May 1

MOSCOW/ MEXICO CITY, Apr 22 (PRIME) -- Several OPEC plus agreement members want to start output cuts before the planned date of May 1, a source in one of the delegations told PRIME late on Tuesday.

"Several countries initiated calling on OPEC plus to start the reduction now to stabilize the market,” the source said.

“But there is no consensus because some of the key players did not take part in the meeting and it is unclear whether they would support the initiative or not. Some countries of the format doubt whether the agreement as such will stabilize the market because positive signals after the countries of the alliance agreed on output reduction have not been seen."

Venezuelan President Nicolas Maduro said that Venezuela and Russia expect the agreement to enter in force on May 1.

The June futures for Brent fell 12% to U.S. $16.85 as of 7:34 a.m., Moscow time, and the WTI futures for June fell 3.54% to $11.19 per barrel.

"The OPEC plus countries are closely monitoring the situation and have every possibility to react if needed," Russian Energy Minister Alexander Novak said.

He said that the WTI price collapse on Tuesday was caused by a sell-off of May futures and the lack of demand for additional oil supply in May. But this is a situation with derivatives, not the price of oil.

Lukoil Vice President Leonid Fedun said that the situation with Urals is less dramatic than with the WTI. "This is not so sad for Russian oil, although painful enough too because the OPEC plus agreement will enter in force only in May. And unfortunately, we can hope that the market will start to unload and we can be merely saved thanks to the OPEC plus only by mid-May," he said.

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