06:47 GMT09 August 2020
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    MOSCOW, April 6 (Sputnik) - Russia and Saudi Arabia are "very close" to reaching an OPEC-non-OPEC deal on market regulation for the reduction of oil output, the head of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev, said on Monday.

    "I think the whole market understands that this deal is important and it will bring lots of stability, so much important stability to the market, and we are very close," Dmitriev told CNBC in its Capital Connection show.

    Citing Russian President Vladimir Putin's proposal to reduce the oil production to 10 million barrels per day last week, Dmitriev said "Russia is committed" to the deal.

    According to Dmitriev, the world is facing "probably the greatest recession ever," which is the reason for Russia, Saudi Arabia, the United States and other countries to step up and try stabilizing the market.

    The US, in particular, risks losing up to 10 million jobs if the stabilization is delayed, Dmitriev said, adding that Russia is working closely with several US agencies to bring the country on board the deal.

    Russian President Vladimir Putin on 3 April stated that oil production could be reduced by approximately 10 million barrels per day, should OPEC+ nations coordinate jointly to each reduces output.

    On 6 March, OPEC+ countries were unable to agree on an extension of a deal to limit oil production. Russia called for leaving output cuts at previously agreed upon levels, while Saudi Arabia and its allies suggested that additional cuts be made, in a move that was followed by the Saudi Energy Ministry’s decision to boost the Kingdom’s daily production capacity to 13 million barrels of oil from the current 12 million barrel level.

    Restrictions were lifted as the deal expired at the end of March, leading to a collapse in the market, in conjunction with a global drop in demand due to the ongoing COVID-19 pandemic.

    Tags:
    oil output, oil output cuts, oil price, oil, Russia, Saudi Arabia, Russian Direct Investment Fund (RDIF), coronavirus, COVID-19
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