As it became known on Friday, April 10, OPEC+ reached a preliminary agreement on the mutual reduction of oil production. Russia agreed to cut daily production by 2.5 million barrels – from 11.3 million to 8.75 million barrels.
According to Krutikhin, the implementation of this requirement will lead to the closure of a huge number of wells – at least 30 thousand.
“This will strike a heavy blow to the economy, will suffer a huge number of people — not only in oil industry but also in related: for service companies, logistics and so forth,” the economist said in an interview Znak.com.
He noted that at this time, oil exporters will have to watch closely to Russia fulfilled its obligations and in case of violation they will apply sanctions against her. As a result, Russian oil may even withdraw from the market, which is beneficial for the members of the OPEC because the price of energy will go up again. If such a scenario would be implemented for the Russian budget it will be a disaster. In the absence of a market for the government to indemnify the oil companies at the expense of the population.
“This will lead to higher gasoline prices and a further drop in living standards”, – concluded the expert.
see also: Russia has agreed to cut oil production in the world
