According to documents published on the Russian President ’s website regarding these measures, including non-sanctioned companies and temporary sanctions against state-owned oil companies outside the production policy, and non-compliance with investment plan regulations 2020/2021.

The document also lists the “special rates” applicable to the transportation of crude oil, including petroleum products, by Russian pipeline operators and Russian railway companies during the OPEC agreement.

Part of the OPEC + agreement is Russia which has pledged to cut its production to 8.5 million barrels a day for May and June, according to February 2020 data of 11 million barrels. A day’s increase of more than 2 million barrels a day, or 19 percent.

However, many are wondering if the country could stick to its principles through the record with the previous OPEC + agreement? But now the oil crisis may prompt Russian oil operators to move fast, with deputy energy minister Pavel Sorokin saying earlier this month that Moscow was expecting “maximum possible reductions.”

According to Reuters, Russia’s crude oil production, which averaged 8.72 million barrels per day in the first 20 days of May, was the biggest by Russian producers. It has to be implemented over the last decades, which is why the government is lending money to help them manage the situation. The situation will last until the end of June, after OPEC +’s combined production reduction will be reduced from 9.7 million barrels per day to 7.7 million barrels per day.

Pivot point: 34.70

Resistance1: 35.50  ​ Support 1: 33.20

Resistance2: 36.30  ​ Support 2: 32.40

Resistance3: 37.50  ​ Support 3: 30.60

Today’s oil Signals:

Traders should buy gold: 33.70, Set Take Profit: 35.20, Stop loss: 33.20.

Analyzed by: Ms. Van Sreytouch, Independent Analyst