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Russia and Saudi Arabia reach a compromise on oil production

Representatives of Russia and Saudi Arabia managed to reach a compromise on oil production. The Wall Street Journal writes about this with reference to its sources.

The newspaper's interlocutors familiar with the negotiation process said that Moscow and Riyadh had decided to maintain the current production level in February, and were planning to increase production in the spring.

The parties were preparing to reach a compromise on this issue the day before, but this could not be done, and the OPEC + countries continued negotiations on Tuesday, January 5.

Iranian Oil Minister Bijan Zangane explained that two scenarios were discussed at the OPEC + meeting the day before. Thus, the parties considered options to increase oil production in February by half a million barrels per day or maintain the January figures.

Agency sources insist that Moscow supported the first option, while the Saudis and most other countries felt it right to maintain the current indicators amid the uncertain situation with the pandemic.

Earlier it was reported that in 2020 oil and gas production in Russia collapsed by 8.6 and 6.2 percent, respectively. According to the CDU TEK summary, the volume of gas production amounted to 692.33 billion cubic meters. December's result separately — 66.28 billion, which is 1.6 percent less than in the same period a year ago.

During a December 17 press conference, President Vladimir Putin said that Russia had already gotten off the oil and gas needle since 70 percent of the Russian budget is not formed from oil and gas revenues.

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