China

Russia and Saudi Arabia agree to extend oil production cuts

Summary

Austria: OPEC, Russia agree to extend oil production cuts through 2018 Description video: OPEC and non-OPEC countries led by Russia voted unanimously on Thursday in Vienna to extend oil production cuts until the end of 2018 and maintain higher prices.\n\nAt […]

Austria: OPEC, Russia agree to extend oil production cuts through 2018

Description video:
OPEC and non-OPEC countries led by Russia voted unanimously on Thursday in Vienna to extend oil production cuts until the end of 2018 and maintain higher prices.\n\nAt the 173rd conference of the Organization of the Petroleum Exporting Countries (OPEC), Chairperson and Saudi Minister of Energy, Industry and Mineral Khalid al-Falih said OPEC and a Russian-led group of ten non-OPEC producers agreed to reduce output to 1.8 million barrels a day.\n\nVideo ID: 20171130 038\nVideo on Demand: http://www.ruptly.tv\nContact: [email protected]\n\nTwitter: http://twitter.com/Ruptly\nFacebook: http://www.facebook.com/Ruptly

Russia and Saudi Arabia agree to extend oil production cuts

Saudi Arabia and Russia have agreed on a preliminary deal to extend existing oil production cuts by one month. In addition, measures have been agreed to increase pressure on countries that violate compliance with the conditions for cutting production..

Recall that OPEC + agreed to cut production by a record 9.7 million barrels per day, or about 10% of global production, in May and June to raise prices, which have collapsed as a result of falling demand associated with the pandemic.

Instead of easing production cuts in July, OPEC and OPEC + discussed maintaining current production volumes.

Russia and Saudi Arabia agree to extend oil production cuts

«Saudi Arabia and Russia agreed on a one-month extension. The agreement is due to the fact that countries that did not fully fulfill the May conditions in the coming months will reduce their volumes in order to compensate for overproduction», – a source told Reuters.

OPEC members Iraq and Nigeria showed poor compliance with their production cut targets in May. Kazakhstan also failed to fully fulfill its obligations under the OPEC pact+.

The group also considered hosting an online meeting on 4 June to discuss manufacturing policy. However, Algeria proposed to postpone the discussion to June 9-10..

«I don’t think the meeting will take place on June 4th. Before that, we need to sort out many more problems.», – said another source at OPEC.

In recent days, oil prices have been rising amid the ongoing recovery in China and the gradual opening of other economies.

«In general, the market is moving in the right direction with the phased lifting of restrictive measures around the world. But we still have to be careful. There is always a risk of another wave of disease», – said a source in OPEC.