OPEC reduces oil production cuts by 2 million barrels per day

The Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC oil and oil ministers from other oil producing countries participated in the video conference system 20.

The Joint Ministerial Monitoring Committee (JMMC) Meeting has ended.

Following the meeting, OPEC leader Saudi Arabia’s Energy Minister Abdulaziz bin Selman said that the group of 23 countries, known as OPEC +, continued to reduce the daily crude oil production by 9.7 million barrels in the period of May 1 to July 31.

Announcing the decision to reduce the amount in question by 2 million barrels, bin Selman said that the amount of crude oil production cuts of OPEC + countries will be 7.7 million barrels per day starting from August 1, however, since some OPEC + member countries produced over their quotas in May and June, Pointing out that he will compensate for the situation by making additional cuts in August and September, bin Selman said that the total production cut amount of the OPEC + group is expected to be 8.1 million barrels per day in August.

Underlining that all OPEC + member countries are equal, bin Selman shared the information that since May 1, all member countries have reduced their crude oil production by approximately 23 percent.

In addition, bin Selman stressed that the excess supply due to the decrease in the amount of production cuts will be consumed in the domestic markets of oil producing countries, will not be used for export or affect the global oil market.

Noting that the global demand for oil has increased, bin Selman said, “23 countries that are OPEC + are softening the measures taken against the new type of coronavirus (COVID-19). we expect it to increase. ” said.

Russia’s Energy Minister Aleksandr Novak, the leader of non-OPEC countries, said that the global oil market is close to rebalancing and that the OPEC + group has made predictions by closely monitoring the developments in the market.

Novak shared that as of August, the increase in oil production of OPEC + countries will not affect the global oil market and the additional production will be used in the domestic market of OPEC + countries.

Underlining that global oil stocks will also be closely monitored, Novak said, “Our decision to increase our oil production is important for the oil market because it shows recovery in the industry. In addition, the increase in production in oil will support growth in other sectors and increase the taxes and gross domestic product.” He completed his words.

OPEC’s next JMMC Meeting will be held on August 18.

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