13:02 GMT24 September 2020
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    OPEC+ oil producers reached a new deal on Sunday, agreeing to reduce oil production by 9.7 million barrels per day for two months, starting in May. The deal resulted in a modest growth of 1-3 percent of oil prices in opening trading on Monday.

    According to the Azerbaijani Energy Ministry, global oil output will drop by 20 million barrels per day as a result of the OPEC+ agreement and plans of many producers outside the organisation.

    "The agreement, reached at the 10th meeting of OPEC+ ministers, is historic for oil producers, consumers, and the global economy in general. For the first time ever, a two-year decision with significant production cuts was reached in this format, which met global support. These OPEC+ steps support the energy market in several ways. First of all, all the obstacles to the implementation of the decision on production cuts will be removed on 1 May".
    The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019
    © REUTERS / Angus Mordant
    The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019
    "Secondly, the importance of this decision is not limited by the 9.7 million barrels per day production cut in May-June by OPEC+. Saudi Arabia, Kuwait, and the UAE will not produce the 2.7 million barrels per day, planned for April", ministry spokeswoman Zamina Aliyeva said.

    She also noted that the US, Canada, Norway, and Brazil would voluntarily reduce their production by 4-5 million barrels per day due to the agreement.

    The recent agreement stipulates 9.7 million bpd cuts for two months. After that, production will be cut by 7.7 million barrels a day for 6 months. From January 2021 until April 2022 oil output will be reduced by 5.8 million barrels per day.

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    Oil, Oil, OPEC, OPEC
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