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OPEC ministers expect to hear Russia’s position on crude production cuts on Friday to be able to take a final decision. On Thursday, the cartel agreed an additional reduction of crude oil output by 1.5 mln barrels per day in the second quarter of 2020 by OPEC+ countries to neutralize the decline in demand due to the coronavirus spread, Venezuelan Oil Minister Manuel Quevedo told TASS.
“Agreed [to reduce] by 1 mln [barrels per day] plus 0.5 mln,” he said.
The minister added that OPEC expects Russia’s Energy Minister Alexander Novak to provide his suggestions “tomorrow.”
The monitoring committee discussed additional cuts by 1.5 mln barrels per day on Wednesday, though Russia and Kazakhstan did not endorse the initiative, according to sources speaking with TASS. Russia’s Energy Minister Alexander Novak left the meeting before its completion. All OPEC+ participants will convene on Friday when Novak returns to Vienna and makes Russia’s view public.
The OPEC+ production reduction pact aimed at stabilizing crude prices is valid until the end of March 2020. In total, the countries participating in the agreement (24 crude exporters, including Russia) should reduce production by 1.2 mln barrels per day to the level of October 2018. Under the deal, OPEC and non-OPEC nations are obliged to cut their oil output by 812,000 and 383,000 barrels per day, respectively. It was decided at a meeting in early December 2019 to extend production cuts to 1.7 mln barrels per day until March. Meanwhile, Saudi Arabia beyond its quota voluntarily reduces production by another 400,000 barrels per day.
