Russia is willing to pump up less oil to counteract the fall in prices caused by the new corona virus. That is what Russian President Vladimir Putin has said. This increases the chance that oil-producing countries of the OPEC oil cartel and allies will decide on further production cuts later this week in Vienna. Putin did emphasize that Russia has no problem with current prices.
Oil prices showed the largest fall last week since the financial crisis. The outbreak and spread of the virus clearly stands in the way of oil demand. There may not be any growing demand this year, which has only occurred four times in the last forty years. Even if demand picks up in the second half of this year, according to experts it will probably not be enough for growth.
The Russian announcement led to a recovery in oil prices on Monday. A barrel of American oil was 2.3 percent more expensive at $ 45.76 shortly before the opening of European stock exchanges. The price for a barrel of Brent oil rose 2.7 percent to $ 50.99.