OPEC+ meeting to be held again today
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+, will hold a videoconference again today, since Mexico didn’t agree to big production cuts after 11 hours of the online meeting. The members plan on changing Mexico’s mind.
The videoconference discussions started quite fruitfully. The OPEC+ tentatively agreed to cut production by about 10 million barrels a day from May 1 until the end of June. Starting July, the oil production will be decreased to 8 million barrels a day for the rest of 2020, and then down to 6 million barrels a day from January to April 2021.
“The increase in commercial oil reserves in the world and the possibility of full filling of storage facilities are alarming. All this can lead to serious consequences for the oil industry and the world economy as a whole,” said Russian Energy Minister Alexander Novak.
Kazakh Ministry of Energy reported that Kazakhstan does not lose hope that in the future a consensus on collective reduction in oil production will be reached, which in turn will have a positive impact on the oil industry.
Kazakh Energy Minister Nurlan Nagoyev took part in the OPEC+ meeting, saying that Kazakhstan has always compiled with its obligations.
“We understand the urgency of today's agenda and are ready to participate in the overall reduction in the oil production,” said the minister.
Previously, on March 6, the OPEC+ could not reach an agreement on further cuts in output levels which in turn led to a sharp drop in oil prices.