OPEC calls for continued cuts in oil production

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It is necessary to continue to reduce oil production, as the filling level of oil storage tanks in the second half of 2020 may remain high. This is stated in the report of the organization, published on Wednesday, August 12.

“Fill rates in storage facilities with petroleum products may remain high due to weak demand for fuel from road and air transport, while diesel, fuel oil and naphtha prices are expected to receive support from sectors less affected by the pandemic,” it said. document.

In this regard, OPEC notes the need to maintain the restoration of the balance in the market, reducing oil production by OPEC producers and participants in the OPEC + deal.

On March 6, the OPEC + countries did not agree on the issue of cutting oil production. As a result, the deal fell apart and oil prices collapsed.

The OPEC + countries managed to conclude a new agreement in April. According to the agreements, the reduction in oil production in the second half of the year will be by 7.7 million barrels, and then by 5.8 million by the end of April 2022. The agreement entered into force on May 1 this year.

By the end of June, the countries of the alliance in total complied with the agreement to cut oil production by 107%. In turn, Russian Energy Minister Alexander Novak stressed that Russia has fulfilled the terms of the OPEC + agreement by 99% this month.

On August 2, the Ministry of Energy of Russia reported that in July the country kept oil production at the June level in accordance with the OPEC + agreements.

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