NEW DELHI: Fuel consumers can look forward to further relief and the government some breathing space in its struggle to revive the economy as Russia on Thursday refused to sign up for an OPEC proposal to cut production further to lift oil prices being battered by shrinking economic activities due to coronavirus outbreak.
International benchmark Brent tanked below the $50-mark to $47.58 a barrel, the lowest since 2017, on reports of Moscow rejecting the OPEC proposal to cut production by an additional 1.5 million bpd (barrels per day) — the steepest since the 2008/9 financial crisis — and favouring maintaining the current output curb of 3.6 million bpd through the year.
Moscow pulls a hefty punch in the oil market and it will be difficult for prices to avoid a downhill course without its support amid subdued demand. Oil prices entered into a bear phase since the coronavirus started mauling markets, slipping 20% from their January high. Pump prices too have been following suit over the week.
