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
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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.

The word oil is pictured on an oil bank at a recycling yard in London - Sputnik International
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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.

Shell logos are pictured outside a Royal Dutch Shell petrol station in Hook, near Basingstoke on January 20, 2016. - Sputnik International
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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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