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OPEC + considers oil cuts of up to 20 million barrels


Reuters: Saudi Arabia and Russia have agreed to significantly reduce oil production

Last updated: Thursday 16 Shaaban 1441 AH – April 09, 2020 KSA 18:59 – GMT 15:59
Posted on: Thursday 16 Shaaban 1441 AH – April 09, 2020 KSA 17:12 – GMT 14:12

Source: Arabic.net

Reuters sources said that Saudi Arabia and Russia have agreed to a significant reduction in oil production.

Sources confirmed the start of the OPEC + video meeting to discuss plans for significant reductions in oil production.

On the other hand, a Russian source revealed to Reuters that OPEC + and other countries are looking to reduce production by up to 20 million barrels per day.

This news comes, at a time when a high-ranking Russian source drew attention to the fact that Russia and Saudi Arabia have removed the main obstacles to agreeing new cuts to oil production.

This was soon reflected in oil prices, as oil futures extended gains, while US crude jumped 10%.

In this context, the partner director of Energy Outlook Advisors, Anas Al-Hajji, in an interview with “Al-Arabiya”, ruled out the possibility that he talks about reducing production by up to 20 million barrels, considering that this is not possible to implement.

In asking whether an agreement will be issued by the meeting, Al-Hajji expected to reach an agreement to reduce production, although in his opinion, “economically, it is not in Saudi Arabia’s interest to reduce production, but politically it is in its interest and in the interest of the Gulf states to close the door to any argument in the hands of Trump or Council members. The elders. “

Regarding the reduction period, Al-Hajji considered that there is a close relationship between the duration of the agreement and the goals of the meeting, whether the goals are political or an act to restore balance to the oil market.

In his view, the decline in oil prices is in the interest of the Gulf states, “as this reality forced Canada, America, and Brazil to forcefully reduce oil production.”

In addition, Christian Malik, head of the oil and gas research division for Europe, the Middle East and Africa, ruled out the agreement of the United States to participate in any production cuts under an agreement with OPEC.

He said in an interview with “Al Arabiya”: “We believe that America will oppose any official cuts, but in return it may make other concessions.”

He added: “The United States can say that the reduction imposed by the decline in oil prices between two and three million barrels per day is” the reduction “, and that this is its contribution to the markets.”

On the other hand, he indicated that shale oil production companies may be more “soft” to conclude an agreement, but major American production companies will not agree to a formal cut.

US President Donald Trump has said that American oil producers have already cut production, noting that he “has many options if Saudi Arabia and Russia do not reduce their production when they meet with other sources today, Thursday.”

“We are actually cutting,” Trump told reporters on Wednesday, when asked if the United States was considering a coordinated cut.

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