Adding the existing reductions and voluntary cuts, the total volume of production decline could be approximately 4.5% of global demand.
OPEC and its allies are discussing deepening the oil production cutspossibly up to 1 million barrels per day (bpd), three sources told Reuters on Friday. Meanwhile, crude oil prices fell to $70 per barrel and market analysts spoke of a excess supply.
The OPEC+which groups the Organization of Petroleum Exporting Countries and their allies led by Russiapump about 40% of world crudewhich means that their political decisions can have a big impact on oil prices.
Three OPEC+ sources they said that cuts are being discussed Looking ahead to next Sunday, at which time the organization’s ministers will meet. This Saturday morning it is known that there will also be a meeting prior to said instance.
The volume of possible cuts
Sources said the cuts could amount to 1 million bpdwhich would add to existing reductions in 2 million bpd and to the voluntary cuts of 1.6 million bpd which were announced by surprise in April.
If approved, the total volume of reductions would amount to 4.66 million bpdthat is, around 4.5% of world demand. Earlier, two OPEC+ sources said they did not expect the group to agree to further cuts.
geopolitical dispute
Western countries accused OPEC of manipulate oil prices and undermine the world economy with its high energy costs. For their part, officials and experts from the OPEC affirmed that the issuance of currency by West over the last decade fueled inflation and forced oil-producing countries to act to maintain the value of their main export product.
“We will never hesitate to take any decision to achieve greater balance and stability. on the world oil market,” said the Iraqi minister of Petroleum, Hayan Abdel Ghaniupon arrival in Vienna.
Source: Ambito
