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After several deliberations, OPEC Plus and other oil producing allies have reached a historic agreement to reduce production, a consortium of the main oil producers and exporters who agree to reduce the daily production of 100,000 barrels per day, which represents 5 percent of total world production This information is reported.
He accepted this through a video conference yesterday. Saudi Arabia’s energy minister, Prince Abdul Aziz bin Salman, chaired the meeting. “We have shown once again that OPEC Plus is alive,” he said at a press conference.
On April 7, OPEC Plus, a joint venture with oil producers and allies with Russia, announced plans for the deal. However, Mexico can be excluded. Although OPEC has not yet made a final announcement on this issue, all countries have accepted it.
The decision was announced in a tweet by the President of the United States, Donald Trump, and Kuwait’s Minister of Energy, Khaled Ali Mohammed bin Fadel.
In a tweet, Trump said: “The big problem with OPEC Plus has been done. This will save millions of jobs in the energy sector in the United States. Thanks to Russian President Vladimir Putin and King Salman of Saudi Arabia. I just spoke with them from the Oval Office. This is a good business for everyone. ‘
According to the decision, OPEC Plus countries will reduce the production of 1 million barrels of oil per day. Brazil and Canada will reduce 1 million barrels. However, due to the coronavirus outbreak, oil production in those countries has decreased significantly. But other G-20 countries have not been told how much oil production will reduce.
The increase in the coronavirus outbreak has greatly reduced the demand for oil on the world market. In late March, the price of oil fell to its lowest position in 5 years.
OPEC and non-OPEC countries have met in the Austrian capital of Vienna since March 7 to review the current market situation and determine fuel economy. The decision is that to increase the price of oil, they will cut 1 million barrels per day in crude oil production, which is about 3 percent of the world’s total supply.
OPEC expected Russia to agree to cut production by 100,000 barrels per day. However, Russia did not agree with OPEC’s friendship with OPEC Plus. Because of this, the question of a new contract is dissolved. As a result, the price of oil is huge. Saudi Aramco reduces oil prices again. The Saudi Arabian state company will further reduce the price of oil in 20 years from its original grade. As a result, the oil price war between Saudi Arabia and Russia began.
Then on Wednesday, OPEC and its allies agreed to cut fuel production. The alliance agreed to reduce oil production by one million barrels per day in May and June. It will run until April 2022. Later, on April 7, a meeting of the ministerial energy level of the G-20 countries was held under the leadership of Saudi Arabia. But later, the barrier in Mexico collapsed.
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