Russia and OPEC could abandon the oil pact to fight market share, Russian minister says

Russia and OPEC could decide to increase their production to fight against market share against the United States, but prices could fall to 40 dollars a barrel, the news agency said Russian TASS, quoting Finance Minister Anton Siluanov. .

"There is a dilemma, what should we do with OPEC? Lose the market occupied by the Americans or give up the deal?" Siluanov said in statements in Washington, according to TASS.

"(If the agreement is terminated) oil prices will fall, so new investment will be reduced and US production will go down because the cost of shale production is higher than the traditional one," he said. he adds.

Siluanov said oil prices could drop to $ 40 a barrel or less for a year.

As noted, has not yet made a decision on the pact, while saying it does not know whether the countries that make up the Organization of Petroleum Exporting Countries would be satisfied with this scenario.

OPEC, Russia and other Allied producers, an alliance known as OPEC +, have reduced the pumping of 1.2 million barrels per day (bpd) since 1 January and for six months. They will meet on 25 and 26 June to decide to extend the pact.

Combined rebates in extraction have pushed oil prices up 32 percent this year to nearly $ 72 per barrel.

This situation led US President Donald Trump to ask OPEC to relax its efforts to support prices. The group said the cuts should be maintained, but there are signs that this position is easing.

Earlier in the week, sources close to the situation told Reuters that OPEC could increase oil production from July if supplies from Venezuela and Iran continue to fall and prices to increase.