Russia's Novak to President Putin: Output should be cut for next few months

According to the latest headlines crossing Reuters, Russia's Energy Minister Alexander Novak told Russian President Putin it was necessary to cut the oil production for everybody including Saudi Arabia and the United States.

"Output should be cut for the next few months, should be gradually recovered thereafter," Novak further told Putin.

Meanwhile, Putin reiterated that the low oil demand due to the coronavirus outbreak and the withdrawal of Saudi Arabia from OPEC+ were are the reasons behind the decline in oil prices. "Saudi Arabia plans to get rid of shale oil producers," Russian President added.

Market reaction

The barrel of West Texas Intermediate largely ignored these remarks and was last seen trading near $27, where it was up 9% on a daily basis.