OPEC + reached the first stage of production reduction agreement will reduce crude oil production by 9.7 million barrels per day in May, February and February this year
The OPEC + emergency video conference hosted by Saudi Arabia ended in the early hours of April 13, Beijing time. A number of Saudi media reported that the participating countries finally reached a production reduction agreement. The first stage will be a daily reduction of 9.7 million barrels of crude oil production in May and June this year. This is also the largest production reduction agreement reached since the establishment of the OPEC + mechanism.
Earlier, Saudi Arabia and Russia and other countries reached a preliminary output reduction intention at the OPEC + mechanism emergency meeting held on the 9th. They plan to reduce crude oil production by 10 million barrels per day in May, June, and February, but Mexico is not satisfied with its daily output reduction of 400,000 barrels. , Said that they were only willing to reduce production by 100,000 barrels per day, which resulted in the failure of the agreement to take effect. In the latest meeting, the participating countries agreed to reduce Mexico's share of production cuts to 100,000 barrels per day.
According to the agreement, the production reduction plan will be implemented from May 2020 for a period of two years, and will be reviewed again by the relevant countries in December 2021. The plan is divided into three stages, of which 10 million barrels per day will be reduced from May to June 2020, 8 million barrels per day will be reduced from July to December 2020, and daily will be reduced from January 2021 to April 2022 Reduced production by 6 million barrels, of which Saudi Arabia and Russia reduced production by 11 million barrels per day, while other countries ’production reductions were based on their respective production in October 2018. The OPEC + mechanism was established in 2016. It is composed of 23 countries that are non-OPEC oil-producing countries such as OPEC and Russia led by Saudi Arabia. However, the United States, the world ’s largest oil producer, has not participated in this mechanism. (Reporter Li Chao)