Oil-producing countries Policy to reduce production cuts from next month "Demand recovery is expected" 6:16 on July 16
Oil-producing countries such as Saudi Arabia and Russia have continued large-scale production reductions, which account for 10% of global production, due to stagnant economic activity due to the new coronavirus, but production is expected to begin next month as demand is expected to recover. I confirmed the policy to reduce the width.
OPEC = Oil Exporting Countries Organization led by Saudi Arabia and oil-producing countries such as Russia will support crude oil prices due to a drop in demand due to the spread of viruses, so in May this year, 10% of world production will be reached. We have decided to cut production by 9.7 million barrels and continue this month.
Regarding the production volume from next month, the oil producing countries held a meeting on the 15th by a video conference system, and confirmed the policy of reducing the production reduction target by about 2 million barrels per day. Oil-producing countries expect to consume more of their supplies as economic activity resumes around the world, showing signs of demand recovery.
The international crude oil market in the New York market was confused in April, with futures prices temporarily declining, but since then it has risen to a level of over $40 a barrel, and with this The average price of regular gasoline has risen for the ninth straight week until this week.
However, it is unclear whether the upward trend of crude oil prices will continue in the future, as there are concerns that the impact on economic activities will be affected by the spread of virus infections in some parts of the world and restrictions on going out.