OPEC Decision on Daily Oil Output Freeze to Have No Impact on Shell's Strategy

© AFP 2022 / JERRY LAMPEN The headoffice of Royal Dutch Shell in The Hague
The headoffice of Royal Dutch Shell in The Hague - Sputnik International
The OPEC decision to freeze daily oil output doesn’t alter Shell's strategy of managing financial framework through the down-cycle by reducing costs, delivering lower and more predictable investment levels, according to the statement of company's spokesman.

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MOSCOW (Sputnik) — The Organization of the Petroleum Exporting Countries' (OPEC) agreement to freeze daily oil output will not affect Royal Dutch Shell 's current strategy, a spokesman for one of the world's largest oil companies told Sputnik on Thursday.

On Wednesday, OPEC oil producing countries agreed a preliminary deal on the sidelines of an international energy forum in Algiers, Algeria. The output ceiling was set at 32.5-33 million barrels a day for the whole cartel. The date of oil output freeze is expected to be presented at the cartel's upcoming meeting in November. OPEC also decided to establish a technical committee to identify the production volume of individuals member countries.

"The OPEC decision doesn’t alter our strategy of managing our financial framework through the down-cycle by reducing costs, delivering lower and more predictable investment levels, delivering our divestment programme and focusing on starting up profitable new projects," the spokesman said.

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Global oversupply and stagnating demand have caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016. Prices recovered amid Nigerian, Canadian and Venezuelan output outages and growing demand in May, reaching a peak of over $50 per barrel in early June.

Crude prices are currently fluctuating between $40 and $50 per barrel.

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