OPEC Member States to close talks on expanding crude oil production scale March 4:04:43
While crude oil prices have fallen sharply due to the spread of the new coronavirus, Saudi Arabia and other member countries of the OPEC, the Organization of Petroleum Exporting Countries, have announced on May 5 that they will expand their scale of production cuts in an effort to support oil prices. We have decided to proceed with close talks with non-members such as Russia.
Global crude oil prices have fallen by more than 20% as economic activity has stagnated worldwide due to the spread of the new coronavirus and crude oil demand is expected to decline.
OPEC members, many of whom rely on crude oil for their revenues and economy, have been worried about this situation and have held a general meeting on May 5 at their headquarters in Vienna, Austria, where their headquarters are located.
OPEC has been working with non-members, Russia, etc. for three years to reduce oil production in order to maintain oil prices, and currently aims to reduce 1.7 million barrels per day, 1.7% of global demand. I am.
At the General Meeting on the 5th, the scale of production cuts was expanded, and a policy to reduce production by 1.5 million barrels per day until the end of June was finalized.
In response, Russia has decided to hold close talks with non-member nations on June 6, but it is reported that non-member Russia has been reluctant to expand production in a large scale.
Further cuts will require Russian cooperation and will continue to be marginally adjusted.