Saudi Opec Agreement

“Any agreement on the extension of the cuts is conditional on countries that failed to fully comply with their cuts in May compensate for their overproduction,” the source said. “With the consensus of all, we could navigate with this agreement and optimize this agreement, subject to what we will see in the future,” Saudi Energy Minister Prince Abdulaziz Bin Salman said Monday at a virtual meeting of the international exhibition and conference in Abu Dhabi. “Through the grace of Allah, and then with wise leadership, continuous efforts and ongoing conversations since dawn on Friday, we now announce the conclusion of the historic agreement to reduce OPEC members` production by about 10 million barrels of oil per day from May 1, 2020,” Dr. al-Fadhel wrote in a tweet. Saudi Arabia and Russia agreed on Sunday with other oil-producing nations to cut production by 9.7 million barrels per day for the next two months to stem a drop in oil prices caused by the coronavirus pandemic and the feud between Moscow and Riyadh. The talks were complicated by disagreements between Russia and Saudi Arabia, but on April 2, oil prices rose after President Trump said he expected the two countries to end their feud. Under the agreement, members of the Organization of Petroleum Exporting Countries, along with Russia and other countries, will increase production by 500,000 barrels per day in January and possibly a similar amount in the following months. The increase, less than 1% of the global oil market, comes at a time when demand is still under pressure from the coronavirus pandemic. Differences of opinion – sometimes vehement, according to sources – between Saudi Arabia and the United Arab Emirates on how quotas are managed and enforced led to the failure of formal OPEC talks on 30 November, and a meeting scheduled for 1 December with Russia and other partners has been postponed for two days. Sunday`s agreement follows a busy week for oil ministers. On Friday, the Group of 20 held a separate virtual meeting to discuss the state of global oil markets, sparking speculation that further production cuts might be possible.

(The G20 includes producers such as Canada and the United States who are not participating in OPEC reductions) However, the meeting ended without any new commitments announced publicly.

L i n k s
B u y   P r i n t s
F a c e b o o k
T r a n s l a t e