/ world today news/ The OPEC + organization will sharply reduce oil production in the next two months, reports Das Erste. It is noted that it is the initiative of Saudi Arabia, which will undertake the main reduction in production – reducing it by 1 million barrels per day. The main reason for the decline is economic uncertainty related to the coronavirus pandemic.
OPEC + responded to the uncertainty surrounding the coronavirus pandemic, according to Das Erste: the organization’s countries unexpectedly sharply cut their oil production in February and March. In these two months alone, production will drop by at least 1.425 million barrels per day, the newspaper said, citing a statement by Saudi Arabia’s Energy Minister Abdulaziz bin Salman.
It is noted that the main reduction will be made by Saudi Arabia, which will reduce its daily oil production by 1 million barrels. In addition, Riyadh noted that OPEC+ members should continue to pursue cautious policies even as there are signs of economic recovery from the pandemic.
As Das Erste notes, Saudi Arabia’s decision to cut production was made without consultation. According to Bin Salman, it is necessary to show leadership in this matter. According to the German newspaper, this could, among other things, be a signal to Russia, which is trying to play an increasingly dominant role within OPEC+. Russia itself, like Kazakhstan, also a member of OPEC +, will not reduce its production in the next two months.
Saudi Arabia’s decision led to a significant increase in oil prices, notes Das Erste. For example, Brent crude oil rose by more than $2 per day.
Translation: ES
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