Russian President Vladimir Putin on March 1 claimed that the current price of oil was acceptable to Russia and that it possessed the tools to react to any changes that might occur because of the spread of Coronavirus around the world. Putin also added that it views the Organisation of the Petroleum Exporting Countries (OPEC) as an effective mechanism to preserve the long-term stability of oil prices.
According to reports, Putin also added that over the years the OPEC has already established itself as an effective tool in maintaining long-term stability of the global energy market. As per reports, Putin was speaking in a meeting with ministers in Moscow on March 1.
President Putin also added that while Russia has large financial reserves to help it tackle any negative impact in the market, it doesn't mean that Russia can avoid taking any action. Putin also added that cooperation with foreign partners must also be discussed.
According to reports, OPEC+ countries are scheduled to meet on March 5 in Vienna. Saudi Arabia is expected to demand that oil production be reduced in order to compensate for the drop in demand for oil due to the Coronavirus outbreak. Russia, who is one of the most important non-OPEC members has till now blocked any such move.
The Organisation of the Petroleum Exporting Countries (OPEC) is an organisation founded by five countries, Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela in September 1960. They were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).
All the member countries combined account for 44 per cent of global oil production and 81.5 per cent of the world's "proven" oil reserves. This staggering numerical advantage allows OPEC to usually play a dominant role in influencing global oil prices.