The ruble escaped with a slight fright
The OPEC+ deal, under which the main oil-producing countries agreed to reduce production of “black gold,” was good news for the Russian currency.
This opinion was expressed by the head of the Alpari IAC, Alexander Razuvaev, in a commentary to Moskovsky Komsomolets.
“For the ruble, the OPEC+ agreement is good news so far. It is already obvious that in the second quarter of 2020, oil will trade at a modest level of $30-35 per barrel. Accordingly, we should focus on 70-72 rubles per dollar. This range, in the absence of external unexpected shocks, will be relevant in May and early summer. By the end of the year, we are targeting $50 per barrel, and the dollar will then go into the range of 65-70 rubles. The panic in the foreign exchange market stopped before it even began. The ruble got off with a slight fright,” said Razuvaev.
“The new OPEC+ deal will be valid for two years. According to Russian Energy Minister Alexander Novak, the alliance countries have agreed to reduce oil production by 10 million barrels per day. As part of this agreement, 23 countries (including Russia and Saudi Arabia) agreed to reduce production by 1 million barrels per day starting May 10. Another 5 million “barrels” will be removed from the market by the United States, Canada, Norway and other countries that were not previously formally part of OPEC+,” the article notes.