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New OPEC+ compromise a positive development that will prevent market chaos – Kremlin

There are no losers in the deal, Dmitry Peskov told journalists following negotiations on production cuts.

The decision benefits oil-producing nations, consuming nations and the world economy in general, which risked sliding into chaos if the deal could not be reached.

He added that Mexico, which has reportedly come on board with some cuts, “took a constructive stance.”

“We can say now all the 23 participating nations have reached a compromise. We are convinced it will have a positive stabilizing effect on the oil market,” Peskov stressed, adding that Russian President Vladimir Putin was “very positive” about the outcome of the talks.

“We are continuing our work with our Mexican partners. We hope we will be able to agree on the parameters that have been coordinated with the other 22 nations,” Peskov said, adding that the beneficial effect on the market “will only become stronger after Mexico joins in too.”

Mexico said on Friday it has reached an agreement with OPEC+ on oil production cuts that was better than the 400,000 barrel-a-day reduction proposed by the other producers on Thursday.

The videolink talks between OPEC+ members aimed to agree a collective cut of crude production of 10 million barrels per day, with the hope that non-participating nations would subscribe to cuts of their own.

Talks between G20 energy ministers underway on Friday may bring more clarity about the terms of future reductions.

The cuts are meant to prevent a looming shortage of storage capacities and push up oil prices, which tumbled on a failure of Saudi Arabia and Russia to agree on production restrictions in early March. It coincided with a global economic slowdown caused by the Covid-19 pandemic and sent crude prices to their lowest level in years.