MOSCOW, April 17. /TASS/: The effect of the new OPEC+ deal will definitely come in, Kremlin Spokesman Dmitry Peskov said on Friday, adding that it is expected after practical implementation of the agreement starts in May 2020.
"The deal has not been activated though, it has been finalized, but technologically its implementation is to start, which will take some time," he said, adding that "the effect will definitely come in."
Asked whether the Kremlin is concerned about the current situation on the markets as the oil price continues falling despite the new OPEC+ deal, Peskov said: "That is obviously a reason for thorough monitoring."
"The price dynamics and the state of global energy markets are currently the object of intense attention both of the country’s leadership and the leadership of all countries of the world," he emphasized.
OPEC+ countries finalized the deal on crude output production in May-June at an extraordinary meeting on April 12. The final reduction quota for two months will equal 9.7 mln barrels per day instead of 10 mln barrels per day as Mexico assumed a smaller quota than expected. Russia and Saudi Arabia will reduce production on equal terms by 2.5 mln barrels per day from the basic level of 11 mln barrels per day.
Meanwhile, despite the reached agreements, the oil price has been declining this week. Particularly, on April 16, the price of Brent crude futures contracts dropped below $28 per barrel and continued extending losses despite the record volumes of output cuts.
According to experts polled by TASS, there are four main reasons for such a pessimistic market response to the OPEC+ deal: small reduction volumes, new discounts announced by Saudi Arabi, distrust in fulfillment of obligations assumed by participants, and the lack of the start of virtual output reduction.
