Russian President Vladimir Putin commented on the situation in the oil market, noting the “dramatic fluctuations” in prices. He stated this at a meeting on energy development.
According to the head of state, problems in the sphere of global energy system began and went far beyond national borders. Shocks due to the fall in oil prices lately are facing not only Russia but the whole world.
“the Global energy market is not the first faced with sudden, dramatic fluctuations. However, this has not happened, it is true,” – quoted Putin TASS.
the Worst in the oil market was the impact of the pandemic coronavirus, from which arose the global economy and, as a consequence, dropped the demand for “black gold”. To stabilise the situation, it is necessary to work together, including within OPEC+, Putin said.
the President also stressed that the energy sector is the key sector of the Russian economy that directly affects the financial well-being of the country and the development of key industries, including manufacturing and agriculture, as well as its export potential.
“We will continue to build an effective cooperation with foreign partners, to reach agreement on balancing the energy”, – Putin added.
Recall that the country-oil producers in a deal OPEC agree on production cuts to rectify the situation on the market, which in recent months, the supply exceeds the demand. The price of June futures for the Russian oil Urals has fallen to $ 17 per barrel of oil, which was not, in fact, since the 1990s years.
Parallel to this, countries are faced with the problem of oil storage. Bloomberg wrote that the U.S. oil companies began to store oil in the tanks of the National strategic reserve for lack of other places. Manufacturers have to pay extra for that oil taken away from them, because to keep it even more expensive. In the Russian case with the storage situation is even worse, since the country has no separate system of storage and neftyanogo fleet. Experts of “MK” has assessed the situation in Russia as critical.
see also: Experts predicted the catastrophic decline of the Russian currency
