OPEC+ agreed on easing the terms of the transaction

the meeting of the Ministerial monitoring Committee (JMMC), which is composed of representatives of the countries participating in the agreement OPEC+, at a meeting on Wednesday agreed on the easing of August 1, 2020 restrictions on oil production.

Thus, according to the previously approved plan, next month the total volume of OPEC production+ will increase by 2 million barrels per day produced before the introduction of restrictions on the volume will be reduced not by 9.7 million, only 7.7 million barrels per day, according to RBC.

At the same time JMMC approved the recommendation for countries is not enough to reduce oil production in may and June, to compensate for the failure in August — September volume 0,842 million barrels a day, notes TASS.

In may, the transaction was performed only by 87% due to lack of performance of its obligations, Iraq, Kazakhstan, Nigeria, Angola and several other countries. At the request of Riyadh, the countries that are not sufficiently reduced their prey until October to make up for this shortfall.

in addition, countries that insufficiently reduced oil production in June, encouraged to provide compensation schedules of this backlog before the end of July.

the Next meeting of the technical Committee of OPEC+ will be held on August 17, the Ministerial monitoring Committee — 18 August.

we also Recall that since the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. A negative situation was 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).

However, on April 12 OPEC+ agreed novuu the 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. 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 is not blocked volumes decline in global demand, besides on the market have accumulated huge reserves of raw materials.

At the meeting 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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