The head of Gazprom Neft, Alexander Dyukov, spoke about the advantages of low oil prices.
“(Low) prices may not be very good for the market, but, on the other hand, <…> (they) will help to improve the market, remove projects with the high cost from the market, which will guarantee successful, already long-term development of the oil market,” Dyukov said on the air of the Vesti Nedeli program on Rossiya 1 channel.
He added that resistance to low prices, production costs of $3.5 per barrel, and low debt levels give every reason to “safely go through even a very long period of low prices.”
“And not only to preserve production, but we also have every reason and opportunity to increase this production,” said Dyukov.
The OPEC + March 6 countries were unable to agree either to change the parameters of the transaction to reduce oil production, or to extend it. As a result, from April 1, restrictions on oil production in countries participating in the previous alliance are lifted. This factor, together with news about the spread of coronavirus, caused a collapse in the oil market and a depreciation of the ruble.