Saudi Arabia and others to reduce production Record crude oil prices continue to decline due to corona impact May 12 at 6:34
With record oil prices continuing to fall due to global demand slump due to the new coronavirus, oil producing countries in the Gulf countries such as Saudi Arabia will continue to implement the coordinated production cuts in order to raise crude oil prices starting next month. It has been announced that it will reduce production by an additional 1.2 million barrels per day.
Crude oil demand has fallen worldwide due to restrictions on economic activity due to the new coronavirus, and international crude oil prices remained at an exceptionally low level last month, with some futures prices falling negative for the first time. I am.
For this reason, Saudi Arabia, Kuwait, and the three oil-producing countries of UAE, the United Arab Emirates, announced on the 11th that they will voluntarily reduce production from next month to raise prices. 1.18 million barrels will be cut.
Regarding global crude oil production, OPEC including the Saudi Arabia and other oil-exporting countries and Russia and other oil-producing countries have already started a cooperative production cut of 9.7 million barrels per day, which is about 10% of the world's production. ..
Although this voluntary reduction in production is aimed at accommodating coordinated production cuts, it is unclear whether it will eliminate excess supply and raise prices as global demand recovery remains uncertain.