US, WASHINGTON (ORDO NEWS) — OPEC + countries will discuss the parameters of an agreement to reduce production in the coming days, the country’s energy minister Mohammed Arkab told reporters.
“We achieved a production decline of 9.7 million barrels in two months,” the minister said, adding that countries positively assessed the results of the agreement.
According to him, the largest contribution was made by Russia, Kuwait, Saudi Arabia and the UAE. Arkab expressed the hope that 23 countries that have signed an agreement to reduce production will continue cooperation.
Saudi Aramco, a state-owned oil company in Saudi Arabia that sets the price trend in Asian markets, will postpone the publication of official Ilian oil selling prices, at least until Sunday, awaiting the outcome of the OPEC + meeting, Reuters on Thursday two sources familiar with the situation.
OPEC + countries still have not decided on the date of the virtual meeting of their ministers. A meeting is still possible this week, but only if promises are received to follow quotas from countries that are not fully fulfilling their obligations. “There are discussions between the ministers about the possibility of compensating for the insufficient May compliance with the deal in June and July,” one source said.
In May, the OPEC + agreement is still being implemented only three quarters. Russia was one of the first to fulfill the obligation .
In June, the global oil market will balance on supply and demand, and in July, a shortage of oil in the amount of 3-5 million barrels per day is already possible, said Russian Energy Minister Alexander Novak.
Prices of the European standard Brent and Russian Urals in early June exceeded the $ 40 level. But because of the discussion on quotas and terms, prices slowed down: since June 3, Russian and European oil standards have been trading at $ 39-39.5 per barrel.
OPEC and its allies, led by Russia, together with the acceding countries, agreed on April 10-12, 2020 to reduce production and remove excess oil from the market starting May 1. Under OPEC + 23, the countries agreed to reduce production by a total of 9.7 million barrels per day. Another 9 countries outside OPEC + announced plans to reduce production to support the deal. Non-OPEC + oil producers have announced a reduction in oil production of 3.6 million barrels per day. Saudi Arabia’s Ministry of Energy previously instructed Saudi Aramco to lower oil production in June by another 1 million barrels per day, in addition to the reduction agreed upon under the OPEC + deal.
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