Аннотация: The Interim report of the Minister of Energy of the Russian Federation Novak. The essay on modern history.
The Interim report of the Minister of Energy of the Russian Federation Novak. The essay on modern history.
Perhaps the interim report of Alexander Novak on his activities in the period "March - April 2020" exists and is considered by somebody. Who knows about this?
Nevertheless, there are information assets that, regardless of the presence or absence of the Novak report, regardless of the results of the consideration of such a report, give some idea of the actions and positions of Alexander Novak in the specified period.
"VIENNA, March 6. / TASS /. Russia even before the start of official negotiations in Vienna on Friday rejected the offer of the OPEC + countries to further reduce oil production ...
(...)
... Another [source] confirmed that there is no progress so far, except for Russia, Kazakhstan is opposed to additional reductions in response to falling demand.
Brent oil on this news is reduced by almost 5% - to $ 47.8 per barrel.
(...)
On Thursday, March 5, OPEC ministers held additional informal consultations and recommended that OPEC + allies increase oil production cuts by 1.5 million barrels per day, not only for the second quarter, but also until the end of 2020. OPEC proposes such a measure in order to offset the drop in oil demand due to the coronavirus. (...) "[https://tass.ru/ekonomika/7917201] [unofficial translation]
"MOSCOW, April 13. / TASS /. Russian oil companies supported the OPEC + deal to reduce production. This was announced by the head of the Ministry of Energy of the Russian Federation Alexander Novak ...
According to Novak, the total reduction in oil production in the world in the next two months could be from 15 to 20 million barrels per day. (...). " [https://tass.ru/ekonomika/8233773] [unofficial translation]
"MOSCOW, April 21. / TASS /. (...)
"The OPEC + countries are closely monitoring the situation and, if necessary, have every opportunity to respond," he [Novak] said and urged not to dramatize the situation with the May futures price for WTI crude oil falling to a negative value.
"... do not dramatize the situation. It is important to understand that this is a paper market, that is, trading in derivative financial instruments, and not physical oil. (...)," Novak added.
Market situation
On April 20, WTI North American oil fell for the first time in history to minus $ 37.6 per barrel in anticipation of the expiration of the May futures contract. This was preceded by a record drop in oil demand, which, according to the International Energy Agency, could reach up to 29 million barrels per day. At the same time, world oil storage facilities are almost overcrowded, and the OPEC + deal to reduce production will begin to operate only in May, so bidders do not take this factor into account in the price of the nearest oil contracts.
The June Brent and WTI oil futures are also getting cheaper.
OPEC + countries at an emergency video conference April 12 were able to conclude an agreement to reduce oil production. It provides for a cumulative decrease in oil production in May - June by 9.7 million barrels per day, in July - December - by 7.7 million barrels per day, in January 2021 - April 2022 - by 5.8 million barrels per day.
In December 2021, the terms of the transaction may be reviewed. " [https://tass.ru/ekonomika/8299051] [unofficial translation]
In information assets, two figures [digits] attract attention:
1) $ 47.8 per barrel (March 6, 2020),
2) minus $ 37.6 per barrel (April 20, 2020).
One of the most useful actions of Alexander Novak (even assuming that an interim report on his activities has not been drawn up and has not been considered) can be considered his statements about the lack of grounds to dramatize the situation.
April 22, 2020 03:26
Translation from Russian into English: April 22, 2020 03:44.
Владимир Владимирович Залесский "Промежуточный отчет Министра энергетики РФ Новака. Очерк современной истории".