OPEC calls for big production cut, but will Russia agree?

The oil-producing countries of the OPEC cartel are calling for a deep production cut of 1.5 million barrels per day to support prices that are sagging due to the spread of the coronavirus.

The proposal, however, assumes that non-member allies like major producer Russia, who will take up the proposal Friday, will agree to the cuts.

Iranian Oil Minister Bijan Zangeneh said at Thursday's meeting in Vienna that the cut would start in the second quarter of the year and, asked if he had a "Plan B" if Russia did not go along, replied: "No, we have no other plan."
Saudi Oil Minister Prince Abdulaziz bin Salman, asked as he left the meeting if Russia was on board, said: "We'll see tomorrow."
Bjarne Schieldrop, chief commodities analyst at SEB bank, said that "the main expectation is... that Russia will join in with additional cuts."
He believes that the OPEC countries and their allies will make the necessary cuts to keep the oil price from dropping to USD 40 or USD 30 per barrel "but not deep enough to drive it up from its current level of about USD 50 per barrel in the next few months."