As the coronavirus has spread internationally, President Vladimir Putin said Russia can cope with the recent decline in oil prices. However, he expected OPEC to push for deeper supply cuts. Further curbs have been resisted by Russia. It argued that reduced output by the OPEC and its allies will not necessarily revive demand.
At the end of March, the existing supply pact will be expired. To make a decision on production policy, OPEC+ is scheduled to meet in Vienna this week.
Several OPEC members are supporting a bigger than previously expected output cut. For further reduction, however, Russia has not made clear on its stance on proposals.
Fears rose that oil demand destruction will be triggered by the virus outbreak. As a result, the price of Brent crude on Friday plunged to $50.05. This has been the lowest since the end of 2018.
