Russia, Saudi Arabia, the United States, and other countries need to bring stability to the markets as the world faces “probably the greatest recession ever,” said Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF).
He told CNBC that Moscow and Riyadh are very close to striking a deal on oil production cuts.“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,” said Dmitriev.
The Organization of the Petroleum Exporting Countries (OPEC) and non-member partners were expected to discuss reductions in oil output via video conference on Monday, but they delayed their emergency meeting until Thursday. “Well actually look, a very positive message, I think they’re very, very close,” Dmitriev said when asked about the possibility of such a meeting at the end of this week.
He also pointed to comments by Russian President Vladimir Putin, who last week proposed a combined production cut of 10 million barrels per day. “[Putin] talked about how important this oil deal is, so Russia is committed,” Dmitriev said.
Indicating no willingness to participate in a joint effort to stabilize the market by cutting US oil production, President Donald Trump issued another threat on Sunday night to impose “very substantial tariffs” on oil imports if the crude price stays the way it is.
The price of oil dropped on Monday after the delay of OPEC+ talks, with international benchmark Brent sliding 0.9 percent as of 8am GMT to $33.79 per barrel. WTI fell 1.4 percent to just under $28 a barrel.