OPEC announced the end of the most difficult period of the oil crisis
US, WASHINGTON (ORDO NEWS) — Oil production in the world is declining rapidly due to the implementation of the OPEC + deal, under which the alliance countries are consistently reducing production, as well as the suspension of production projects due to poor pricing in other countries. These factors make it possible to talk about the end of the most difficult period of the crisis in the oil market. Such an opinion on the air of Bloomberg TV was expressed by the Secretary General of OPEC Mohammed Barkindo.
“We are cautiously optimistic that the worst period of the crisis seems to be behind us,” he said. According to OPEC, the total reduction in production, taking into account the OPEC + deal and the natural shutdown of wells in the world, reaches 17.2 million bps. Of this volume, 3.6 million b / s is accounted for by production cuts in countries not participating in the agreed production cuts.
Barkindo also noted that at the OPEC + Ministerial Meeting, scheduled for June 9-10, “all scenarios” will be considered on the levels of reduction after June, taking into account the state of demand at that time.
The OPEC + agreement came into force on May 1, it implies a reduction in production by the alliance countries of 9.7 million bpd from May to June. Russia and Saudi Arabia, according to the agreements, will reduce oil production by equal shares – 2.5 million bps from the base level of 11 million bps.
The agreements will be valid for two years, but from July to December 2020, 7.7 million b / s is already falling under the alliance, and from January 2021 until the end of April 2022 – 5.8 million b / s. Parameters of the transaction may be revised in December 2021.
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