CEO of Gazprom Neft: We are on the verge of the Great Depression
Based on the results of the deal concluded within the framework of OPEC+, one should not expect a quick recovery in oil prices.
Gazprom Neft CEO Alexander Dyukov stated this in an interview with Kommersant, answering a corresponding question.
“Of course, we should not expect a sharp rise in prices as a result of the transaction. We assume that the second quarter will be the most difficult, but we hope that the lifting of quarantines and the restoration of business activity will begin in the summer, and in the fall, oil demand will be able to reach a level close to the pre-crisis level. In this, one might say, optimistic scenario, by the end of the year the price could reach $40–45 per barrel, with further growth in 2021,” Dyukov said.
At the same time, he admitted that it is now very difficult to predict demand and its recovery.
“It is likely that we are on the verge of another Great Depression. Although I still hope that this scenario can be avoided. Therefore, it is extremely difficult to say now whether the agreement is excessive or, conversely, insufficient. Obviously, the agreement is not a dogma and implies the possibility of making adjustments depending on the development of the market situation,” Dyukov noted.
Let us recall that as a result of the deal within the framework of OPEC+, Russia will face the largest reduction in oil production in history – about 18% of the current volume.
Gazprom Neft CEO: We are on the brink of a Great Depression