The COVID-19 virus pandemic is the main catalyst for the fall in oil prices, said Russian Prime Minister Mikhail Mishustin. He added that the Russian oil industry is ready for such volatility and remains competitive.
“According to the market reaction, the negative effect of the influence of coronavirus on the economy is the main trigger for the drop in oil quotes,” Mr. Mishustin said at a meeting on economic issues (quoted by Interfax).
The head of government added that oil production in the country remains, the companies are fully operational, and Russia continues to place its products in key markets.
According to the Prime Minister, the world economy, and accordingly, world oil prices, will begin a gradual recovery only after the normalization of the epidemiological situation in the world. “The way this is happening in China,” he added.
Recall that the collapse of the oil price to its lowest level since 2003 occurred against the backdrop of the collapse of the OPEC + deal and the spread of the COVID-19 virus in the world. The collapse in oil prices triggered a fall in the ruble. LUKOIL called the price of oil below $ 25 a disaster for Russia. VTB considers the situation in the economy a “perfect storm”. This week, Brent crude finished trading at $ 27.3 per barrel.
About what kind of support measures the Russian business is asking the state, in Kommersant’s article “Nothing personal, just a virus”.