All 23 countries that participated in the negotiations on a new OPEC + deal came to the conclusion that it was necessary to reduce oil production, the head of the Ministry of Energy confirmed. In this case, if necessary, the agreement may be adjusted
(Photo: Global Look Press)
The new OPEC + deal will run until May 1, 2022, with 23 countries participating. This was told by the head of the Ministry of Energy, Alexander Novak, on the television channel “Russia 24”.
Novak confirmed the information on the terms of the transaction. During the first two months, from May to June, production decline will be 10 million barrels. per day. From early July, production will be partially restored and the reduction will be limited to 8 million barrels. per day. In 2021, the quota for participating countries will be limited to 6 million barrels. per day. The agreement is designed for two years, until May 1, 2022.
Novak stressed that, if necessary, the parties to the agreement can take additional measures to stabilize the market situation. “We will need to monitor the situation on the market, it will change. And if necessary, either additional measures will be taken, or production will be restored in faster ways in the countries, ”the minister said (quote from TASS).
Oil prices fell amid the coronavirus pandemic and the collapse of the OPEC + deal to reduce oil production. In early March, the alliance countries were unable to agree either to change the parameters of the transaction to reduce oil production, or to extend it.