All countries, shortfalls in OPEC transactions+ which was discussed at a recent meeting of the monitoring Committee, introduced the plans for the payment of its obligations. This was stated today to journalists by the head of the energy Ministry of Russia Alexander Novak.
however, he hinted that the Committee’s approval of OPEC+ plans to compensate the “losers” of its obligations is not required, it’s just a sign of the commitment agreement, according to PRIME.
Earlier among the parties to the transaction to reduce the oil called Iraq, Kazakhstan, Nigeria, Angola, Gabon.
the Minister also said that Russia was committed “wholly to the execution of the transaction”. “We have the commitments undertaken, will perform,” — said Novak, commenting on the shortfalls in Russia 4% of its may obligations under the transaction OPEC+ in subsequent periods.
Recall that from the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. The negative situation caused by a whole complex of factors: a General overproduction of raw materials, a sharp drop in demand due to the rapid spread of coronavirus infection COVID-19 (March 11, was declared a pandemic) and concerns about its impact on the global economy and the collapse of the deal, OPEC+ (officially from April 1, but in fact, after fruitless negotiations of the countries-oil producers at a meeting on March 6 in Vienna). Just last circumstance was the trigger to the collapse in oil prices. Moreover, Saudi Arabia announced plans to increase production and lower oil prices. Later, the desire to lower the prices declared Iraq, Kuwait, UAE and Nigeria.
For the first quarter of 2020, the price of Brent crude fell by 65.6%, while WTI rose by 66.5%. And at the end of March the cost of June futures on Brent fell below $22 per barrel (to $of 21.72), that is, to at least March 2002, and the may futures for WTI to us $20.1.
April 12 the country’s OPETo+ finally agreed on a new deal, joined by 23 States. The agreement will be valid for two years, from may 1, 2020 to may 1, 2022-th. In may—June this year, the production cuts will amount to 9.7 million barrels per day (from October 2018), then — until the end of 2020 — 8 million barrels, and 6 million by the end of April 2022. While Russia and Saudi Arabia base count will be 11 million barrels per day (of the Russian Federation in the first 2 months will reduce production at 2.5 million barrels per day). New business OPEC+ was a forced reaction of oil producing countries on the situation in the market and pressure from the United States. Overall, however, it does not cover the volume decline in world demand for the same in the market have accumulated huge reserves of raw materials. Nevertheless, assured Novak, if necessary, the parties to the transaction can take additional measures to stabilize the situation on the market.
on June 6, the member countries of OPEC+ extended on a month — until the end of July — the period of validity of the agreement to reduce oil production to 9.7 million barrels per day.
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