Russian news agency RIA Novosti claimed that currently there is no consensus between Russia and Saudi Arabia regarding the output cuts that need to be implemented to keep the oil prices under control.
Russia just confirmed its participation in the OPEC+ meeting that is taking place on April 9.
The conference is taking place via video link, as a precautionary measure against the spread of the coronavirus epidemic. At first, it was set to take place yesterday but was delayed to “to allow more time for negotiations”.
Meanwhile, the Russian news agency RIA Novosti claimed that currently there is no consensus between Russia and Saudi Arabia regarding the output cuts that need to be implemented to keep the oil prices under control. According to Reuters, the output cuts would depend on how much other countries like the US, Canada, and Brazil will cut.
The expectations for further oil supply cuts sent the oil prices higher during today’s session. By 10:11 GMT the Western Texas Crude Oil futures climbed 4.06 percent, hitting the 27.14 level, while the Brent oil futures advanced by 2.66 percent, hitting the 33.93 level.
“Oil prices are holding their ground with market expectations building on an agreement for an output reduction of 10 million barrels per day (bpd), or at least close to 10 million bpd,” said an analyst at BNP Paribas.
Dropping oil prices are making great trade opportunities
Eurozone Ministers to Agree on a Fiscal Package
According to sources, the Eurozone finance ministers are agreeing today on measures that would cost around half a trillion euros to fight against the economic effects of the coronavirus outbreak.
“There’s a lot of room for solidarity within the existing instruments and institutions. We have to exploit these tools fully and remain open to doing more. A strong package is in the making,” said the president of the European Council Charles Michel.
Among the measures would be the establishment of credit lines that would help the most affected countries, like Italy or Spain, to alleviate their economic necessities. The help would come with conditions, so they will need to implement some macroeconomic reforms if they want to accede to them.
The ministers are also discussing the creation of a joint EU solidarity fund, however, it’s not likely this will be approved given the opposition by countries like Germany or the Netherlands given that the plan would need to be funded by joint borrowing.
“On the joint liability of all governments, it is no surprise that there are different opinions on this,” told one source to Reuters, “There is a clear need for more work and discussions,” it added.
By 10:34 GMT the Euro went up by 0.86 percent against the US dollar, hitting the 1.0884 level.