OPEC+ may keep May production volumes until the end of 2020

In the second half of 2020, the countries participating in the OPEC+ agreement can keep a reduction in production at the level of 9.7 million barrels per day, Enkorr reports.

On April 12, OPEC+ member countries signed an agreement to reduce oil production during May-June. Since July, the decline should be 7.7 million bpd. Since 2021, the level of reduction should be 5.8 million bps.

Reuters reports that OPEC+ states ‘ministers want to keep current reductions in future. This is the main scenario that is currently being discussed. One of the agency’s interlocutors added that a return to the normal level of oil demand is not possible until all restrictions on movement imposed in connection with the coronavirus pandemic are removed.

Recall that oil prices fell on March 9. This was facilitated by coronavirus and pandemic restrictions in the largest economies in the world, leaving the market overwhelmed by a sharp decline in demand and an excess of oil.

Earlier it was reported that Saudi Arabia, Kuwait and the UAE decided to further reduce oil production, in addition to its obligations under the OPEC+ deal.

Tags: contracts, oil, legislation, USA, oil production, drilling, coronavirus, RF, Oil refinery plant, foreign affairs, OPEC+, monopoly, agreement, volumes, petroleum products, power system balance, energy sector, quarantine, Brent, WTI, pandemic, Saudi Arabia, oil pipeline, COVID-19, decline in production, oil companies, oil reserves, crisis

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