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Putin: Current Situation on Oil Markets Could Lead to Future Deficit

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Putin: Current Situation on Oil Markets Could Lead to Future Deficit

Trump and and confident Putin at their Helsinki summit in July 2018, via Reuters.

Sputniknews reports (source):

The Russian president and members of the cabinet and oil industry officials met via videoconference on Friday to discuss the situation on the global energy markets. Oil prices suffered their worst decline in decades in March after Russia and Saudi Arabia failed to reach a deal on output cuts amid the ongoing COVID-19 crisis.

The current slump in demand for oil could lead to shortages in the future when the global economy enters a period of economic recovery, Russian President Vladimir Putin has said.

“Demand will inevitably begin to recover, and a situation of an acute shortage of oil may arise, with all the negative consequences for the world economy [that go with it], because prices may skyrocket,” Putin said, speaking to officials and oil industry representatives on Friday. Putin added that it was the world’s common interest to avoid such a scenario.

Today, the situation on energy markets remains difficult, with demand continuing to fall, Putin noted. This undermines investments and threatens the workforce, and Russia would prefer long-term stability on the oil market, he added.

“I want to emphasize that our country has always advocated and is advocating for the long-term stability of the oil market, taking into account the positions of both producers and consumers,” Putin said.

According to the Russian president, the current situation poses not only economic risks, but technogenic and ecological ones as well. Putin noted that he spoke to US President Donald Trump about the energy markets situation earlier this week, and that both sides expressed concerns.

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