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OPEC agrees to end oil production cuts altogether by September 2022

Saudi Arabia’s Energy Minister Abdulazizbin Salman Al-Saud speaks via videolink at a virtual emergency conference in OPEC and non-OPEC countries after a coronavirus disease (COVID-19) outbreak in Riyadh, Saudi Arabia on April 9. To do. 2020.

Saudi Press Agency | Reuters

OPEC and its non-OPEC allies signed a contract on Sunday to phase out oil production cuts of 5.8 million barrels per day by September 2022. OPEC announced in a statement that the group’s oil cut adjustment easing, known as OPEC +, will begin in August.

The deal followed a temporary but unprecedented predicament that began in early July, with the United Arab Emirates rejecting a group’s coordinated oil production program led by its champion, Saudi Arabia.

Abu Dhabi has demanded that it raise its own “baseline” of oil production (the maximum amount OPEC recognizes it can produce). This is because this number determines the size and allocation of production reductions that must be followed according to the group’s production contract. .. Members reduce the same percentage from the baseline, so a higher baseline can increase the UAE’s production quota.

The UAE’s enthusiasm for the deal on Sunday was evident in the opening statement of Minister of Energy Emirati Suhail Armasroy.

“I am grateful for the constructive dialogue between His Highness and OPEC,” Al Mazuroy said at a news conference, referring to Saudi Arabia’s Energy Minister Abdulaziz bin Salman. “The UAE is committed to this group and will always work with it to achieve market balance and do our best to help everyone. The UAE will continue to be a commitment member of the OPEC Alliance. “

OPEC agrees to end oil production cuts altogether by September 2022

Source link OPEC agrees to end oil production cuts altogether by September 2022

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