"Reservoirs are already missing for storage," said Dmitry Perevalov, Moscow's independent oil operator and former vice president of oil company Slavneft Oil & Gas. That's because the COVID-19 pandemic affects Russian demand and has made its oil inventories drop. So far even with low commodity prices and threats from U.S. President Donald Trump, the country has not cut production.
In addition, the country is more vulnerable than Saudi Arabia and the US, as Russia no longer had large reservoirs. If the world's three largest producers do not agree to voluntary cuts this week, Russia may have to reduce production unilaterally as it will run out of room to stockpile excess barrels.
OPEC (Organization of Petroleum Exporting Countries), Russia and other producers will meet by videoconference on April 9 to discuss production cuts. G-20 energy ministers, which include producers such as the U.S. and major consumers such as India and China, are expected to meet the next day for broader discussions.