Page 95 - RusRPTJul20

9.1.1b​ Oil and gas sector news
Russia and Saudi Arabia are reached a deal to extend the current OPEC++ production quotas for two months​. According to the OPEC+ agreement signed in April, production cuts should ease on July 1 from a cumulative 9.7 million barrels per day (mbpd) to 8 mbpd. The Wall Street Journal reports that Saudi Arabia wants to extend the current 9.7 mbpd quota through the end of the year, while Russia wants to increase output in July. The two countries reportedly see September as a middle ground and are close to reaching an agreement. Oil prices have risen as a result, with Brent crude exceeding $39/barrel today—not far from the Russian government’s cutoff price of $42/barrel.
Russian oil exports to Europe are set to hit their lowest levels in two decades in July​, with an output cut deal prompting other suppliers to fill the gap left by Moscow, data from traders and Refinitiv Eikon shows. Russia is set to slash seaborne Urals supplies to Europe to 3.8mn tonnes (900,000 barrels per day) next month, its lowest since 1999.Light oil flows from the United
95​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com