OPEC + .. conditional agreement to reduce oil production for two years

Published on : 2020-04-10

After a long series of virtual meetings and deliberations, the countries of the "OPEC Plus" group, which includes the member states of the "OPEC" and the oil producers in solidarity with it, decided to cut daily production in three stages, culminating with the beginning of 2021 until April 2022.

 And ended the extraordinary meeting, which continued late last night, to agree to reduce oil production by 10 million barrels per day for two months, starting next May, and then to reduce it by 8 million barrels per day throughout the period between July and December 2020.

 Because of the Corona pandemic, the meeting took place via the "Webinar" technology on the Internet, chaired by Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, and Russian Energy Minister Alexander Novak.

 According to the announced decisions, the daily OPEC production will drop to 6 million barrels per day for a period of 16 months, but the agreement will remain suspended until Mexico approves it, as it expressed a reservation over the length of the period that the reduction will include.

 As observers, Argentina, Colombia, Ecuador, Egypt, Indonesia, Norway, Trinidad and Tobago and the International Energy Forum participated in the meeting. Meanwhile, OPEC member states and participating oil-producing countries announced reaffirmation of cooperation in order to achieve stability in oil markets and maintain it, and in the common interests of producing countries, and by providing safe, economical and highly efficient supplies to consumers, and with fair returns for invested capital.

 Egypt's participation in the conference came through Eng. Tareq Al Mulla, Minister of Petroleum and Mineral Resources, at the invitation of OPEC.

 Al-Mulla pointed out the importance of the ministerial meeting at this crucial time for the return of balance to markets and prices, and that Egypt's participation allows it to follow-up and direct coordination with the OPEC + group and support the efforts made and cooperation initiatives between producers to achieve sustainability and stability of the global oil market, which will reflect positively on the parties of the relationship that includes the oil producing countries Consumer countries and international oil companies.

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