Russia: Natural decline in oil production is not the same as joint oil cuts

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Any natural decline in oil production due to low prices is separate from voluntary output cuts and which are part of joint agreements between oil nations, Kremlin spokesman Dmitry Peskov said on Wednesday.

The Organization of the Petroleum Exporting Countries and its allies led by Russia - a group known as OPEC+ - is set to hold an on-line meeting on April 9 to discuss steps on how to stabilize oil markets hit by weak demand amid coronavirus.

Russia and other OPEC+ members have signaled that other countries, in particular the United States, should join the action this time, after benefiting from years of stable oil prices when the group voluntarily cut production.

Peskov declined to say what Russia’s position would be in the upcoming meeting. But asked on a call with reporters whether a natural decline in oil output due to weak oil prices could count, Peskov said this was not equal to a joint cut.

“These are absolutely different reductions. You are comparing overall decline in demand with cuts aimed at stabilizing global markets,” Peskov said. “These are different concepts and they could not be equaled.”

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