The American president also evokes a cut twice more important than that announced Sunday.
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Declines in oil production envisaged by the Organization of the Petroleum Exporting Countries, its OPEC + partners, and the G20 could reach 19.5 million barrels per day (mbd), said the Minister of Energy on Tuesday. Saudi.
Donald Trump told him on Monday that the main oil-exporting countries predicted a 20 mbpd cut in production, twice the cut announced by OPEC and its main partners, gathered within OPEC + .
“To have been involved in the negotiations, and to say the least, OPEC + is considering cutting 20 million barrels a day and not 10 million, as is generally reported,” wrote on Twitter the American president, who did not provide details.
The countries of the OPEC + alliance, led by Ryad and Moscow, agreed on Sunday to cut production by 9.7 mbd in May and June to stop the collapse in prices.
Against the background of the coronavirus pandemic which led to a fall in world demand, this fall was caused in particular by a price war which broke out in March between Saudi Arabia and Russia, the two countries having failed to reach an agreement on production quotas.
According to Saudi media, Saudi Minister of Energy Prince Abdelaziz bin Salman said on Tuesday that G20 crude oil producers outside of OPEC + have promised cuts of 3.7 bpd.
According to the agreement between producing countries, Ryad and Moscow will cut 2.5 mbd each of their production, which amounted to 11 mbd in October 2018.
But the Minister of Energy, quoted by Energy Intelligence, said that Ryad would cut 3.8 mbpd from its current production of 12.3 mbpd. Other Gulf countries will also further reduce their current production, he added.
“So in reality, what OPEC + will reduce from May 1 is 12.5 mbpd,” he said.
He also believed that purchases of crude oil intended for the strategic reserves of the states could help to achieve the objective.
“I think this is more than wishful thinking than a reality,” said John Hall of Alfa Energy, when interviewed by the AFP.
Oil prices in London and New York dropped Tuesday around 4:00 p.m. GMT more than 5%.
The new coronavirus pandemic has severely affected demand for crude oil, with analysts estimating that a third of world demand – 100 mbd before the pandemic – has disappeared.
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