Nigeria brings down the Russian economy

Initially, the failed extension of the OPEC + agreement was seen as a formal event. However, after the Russian delegation left the meeting, it became clear that the situation was not simple. The existing conditions will be off by April 1, 2020, but what will happen next?

It is known that during the negotiations, the Russian side proposed to refuse from the current conditions for oil production due to the spread of coronavirus, which affects the oil sector greatly.

However, the Russian partners in the oil market did not support the proposal, and have already announced their intention to increase oil production. In particular, representatives of Saudi Arabia and Nigeria made similar statements.

It is not clear, how the current situation will end for the world economy and individual states, since the agreement on the reduction of oil production was beneficial for OPEC countries to increase the cost of the produced product. Now, experts do not exclude the possibility that oil producers will have to return to the negotiating table again in the current realities (after all, reducing the price of raw materials is not beneficial for all of them). 

By the way, considering the fact that after Saudi Arabia and Nigeria announced their desire to increase oil production, the ruble exchange rate could fall even more significantly. Nigeria plans are to produce up to 2.5 million barrels per day (+ 40%), and in the future - up to 4 million barrels per day, which will further reduce the oil prices. If the countries fail to agree, the Russian national currency expects might face a depreciation with the course of “a suitcase of money for one dollar”.

For the moment, the dollar costs a little more than 73 rubles, and the cost of one euro is almost 83 rubles.