Saudi Arabia began to cut production without waiting May 1
US, WASHINGTON (ORDO NEWS) — Saudi Aramco began to reduce oil production last week, without waiting for an agreed date to start cutting OPEC + production. It is reported by Bloomberg with reference to a representative of the Saudi oil industry, familiar with the situation.
Earlier this month, OPEC + participants agreed on a reduction in production from May 1 to support the oil market, which survived a price collapse amid a coronavirus pandemic. In total, 23 countries must reduce production by 9.7 million barrels per day.
Aramco began cutting production from about 12 million barrels per day to reach an agreed level of 8.5 million barrels per day, a Bloomberg source said. According to the interlocutor of the agency, Aramco can reach the target production level somewhat earlier than May 1.
Earlier, Kuwait, Algeria and Nigeria signaled their intention to prematurely begin to reduce production.
The International Energy Agency predicts that global oil demand will fall by 29 million barrels per day in April to its lowest level in 25 years.
In 2020, oil demand will fall by a record 9.3 million barrels per day, the IEA expects.
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