Gazprom Neft Head Speaks about the Advantages of Low Oil Prices

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.

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