Russian President Vladimir Putin said that Russia can cope with the recent decline in oil prices as the coronavirus has spread internationally but offered a chink of light to Opec as the producer group pushes for deeper supply cuts. Moscow has been resisting further curbs, arguing that reduced output by the Organization of the Petroleum Exporting Countries (Opec) and its allies, known as Opec+, will not necessarily revive demand, sources said. Opec+ is due to meet in Vienna this week to decide on production policy when its existing supply pact expires at the end of March.

Several key members of Saudi Arabia-led Opec are leaning towards a bigger than previously expected output cut, four sources with knowledge of the talks have told Reuters, but Russia has yet to make clear its stance on proposals for further cuts.

"I want to stress that for the Russian budget, for our economy, the current oil prices level is acceptable," Putin told a meeting with Russian energy officials and producers to discuss the coronavirus and its implications.

The price of Brent crude slumped to $50.05 on Friday, its lowest since late 2018, on fears that the coronavirus outbreak will trigger oil demand destruction. Russia, which has more than $560 billion in its reserves, envisages in its budget an average Brent crude price of $42.40 a barrel, Putin said.

"Our accumulated reserves, including the National Wealth Fund, are enough for ensuring a stable situation, the fulfilment of all budget and social liabilities, even under a possible deterioration of the global economic situation," Putin said. He added, however, that this does not set aside the need for action, "including together with foreign partners".

Putin also highlighted the difficulty in forecasting moves in oil prices and acknowledged that Russia needs to be ready for various scenarios. Opec+ has "proved to be an effective instrument to ensure long-term stability on global energy markets", he told the meeting, with his comments released on the Kremlin website.