October 28, 2020

OPEC and allies agree to a new cut in crude supply of 500,000 barrels / day

OPEC and its allies (OPEC +) agreed this Friday in Vienna to withdraw 500,000 barrels of crude oil from the market next January, in addition to the cut of 1.2 million barrels per day (MBD) that entered into force on 1.1.2019 .

"To balance the market, a 500,000 bd cut was necessary," said Russian Energy Minister Alexandr Novak after concluding the seventh alliance meeting formed by the fourteen partners of the Organization of Petroleum Exporting Countries (OPEC) and Ten other independent producers.

Ministers from the group of 24 countries will study the situation again and eventually readjust the level of their oil offer on March 5, 2020, at an extraordinary meeting in Vienna.

In addition, they convened their next regular conference for June 9, also in the Austrian capital.

Novak declared at a press conference that his country will contribute to the new cut with a reduction of its pumping by 70,000 bd, while Saudi Arabia will do so at 167,000 bd, according to his counterpart from the Wahhabi kingdom, Prince Abdelaziz bin Salman.

Saudi Arabia – one of the founding members of OPEC – and Russia (non-member) are by far the two largest producers of OPEC +, surpassed only by the United States.

. (tagsToTranslate) OPEC (t) allies (t) agree (t) clipping (t) barrels

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