[size=41]Why did Russia reject the production cut agreement with OPEC? .. Nabil El-Marsoumi
Books: Dr. Nabil El-Marsoumi
Russia has refused to support an additional supply cut of 1.5 million barrels per day until June 2020. Countries outside the organization contribute 500,000 barrels per day to cope with the decline in demand caused by the outbreak of the Corona virus, to which OPEC responds by abolishing all restrictions on its production. The Russian-American conflicts cannot be ignored as a background to the new Russian position, which was a shocking shift in the path of producers ’cooperation, as the Russians see that they have no reason to support American producers. More than 13 million barrels of oil, 65% of which are shale oil, exports 4 million barrels a day, and responds to the United States blocking the Nord Stream 2 gas pipeline linking Russia and Germany. And the Russian Finance Ministry confirms that the country can adapt to oil prices between $ 25 and $ 30 a barrel for a period of six to ten years to come and that it may resort to the country’s national wealth fund, whose assets amount to more than $ 150 billion to compensate for losses resulting from low oil prices that may Up to $ 150 million per day and to finance the expected deficit in the Russian budget, which relied on an oil price of $ 42.4 per barrel, to ensure macroeconomic stability if oil prices continue to fall. And if the current scenario of low oil prices continues, high-cost shale oil producers in the United States can reduce capital budgets again based on expected activity cuts, which will lead to lower US shale oil production later in the year, an output that drives abundance Currently on display in global markets.