The oil-exporting countries, Saudi Arabia and Russia at the head, agreed Sunday evening of a production drop of an unprecedented scale in the hope of halting the fall in prices affected by the pandemic of new coronavirus. After several days of arduous negotiations, a final meeting organized by videoconference has removed the last obstacles to a reduction in the oil supply of 9.7 million barrels per day (mbd) in May and June, announced the Organization of the oil exporting countries (OPEC).
Welcoming an “historic adjustment” in production, OPEC secretary general Mohammed Barkindo stressed that this reduction would be “the largest in volume and the longest in duration” ever implemented by the cartel and its partners. The organization led by Saudi Arabia, which has been cooperating with Russia for two years, intends to apply these quotas until May 2022, increasing them to 7.7 million mbd in the second half of 2020, then to 5, 8 million mbd. This announcement allowed prices to rebound by around 3% at the opening of Asian markets on Monday: the barrel of West Texas Intermediate (WTI) rose to 23.55 dollars and that of Brent from the North Sea to 32 , 46 dollars.
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In the morning, the WTI even jumped by more than 6%. Due to the confinement of half the world’s population to limit the pandemic of the new coronavirus, demand for oil is in free fall, in a market where the supply was already oversupplied before Covid-19. This unprecedented crisis, which has plunged prices, has forced players in the sector to react. While friction between Ryad and Moscow, launched in a war of prices and market shares, had dominated in recent weeks, it was a dispute with Mexico that had blocked since Thursday the response desired by the majority of
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“data-reactid =” 25 “> Disneyland wants to extend short-time working to all of its short contracts
Have the prices of SCPIs risen too much?
Containment extended until May 15, border closure … What Emmanuel Macron could announce, And if pension reform fell into the water … The eco flash of the day
Boris Jonhson released from hospital
Minister of Agriculture calls for markets to reopen
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