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The G20 is committed to “doing whatever it takes” to save the oil market.
The G20 energy ministers held a video meeting on Friday to discuss the situation around the low price of oil. Photo from a previous meeting.
YAHYA ARHAB / EPA
published:,
The video meeting of energy ministers in the G20 countries was completed after 5.5 hours earlier on Friday, and at 1:30 pm on Saturday they made an official statement.
Here, the G20 countries are behind the measures being taken to save an oil market in crisis due to the coronavirus and the price war.
They claim that they “commit to doing what is needed both individually and collectively” to ensure a stable energy market.
– We recognize the importance of international cooperation to guarantee the resilience of energy systems.
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Opec + will cut ten million barrels per day
The final declaration of the G20 countries does not include figures on how much each non-OPEC country could reduce its production.
Friday night’s meeting came after the oil partnership Opec + countries, with Saudi Arabia and Russia at the helm, agreed to a historically large cut deal last night, involving a total reduction of 10 million barrels per day During two months. In addition, they will continue to reduce on a smaller scale until April 2022.
However, the deal depends on Mexico, which has not agreed to join. Saudi Arabia and Russia also want non-cartel oil countries to cut production by a total of 5 million barrels per day, according to Reuters.
Norway may consider cuts
Oil and Energy Minister Tina Bru (H) attended the G20 meeting on Friday as representative for Norway.
In an email before the meeting, the Ministry of Oil and Energy confirmed to E24 that Norway is considering a unilateral cut in Norwegian production, provided a broad group of producers agree to cut.
“As long as the agreement between the OPEC + countries is implemented, Norway will have reason to consider such a unilateral cut. In this context, today’s G20 ministerial meeting is also important, “the ministry wrote.
The meeting included countries that account for 70 percent of world oil production and 80 percent of consumption.
Several experts have pointed out that a possible total cut of 15 million barrels per day will not be enough to balance the oil market. Oil prices fell on the last trading day on Thursday, more than 12 percent from the day’s peak.
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The United States will help Mexico
United States President Donald Trump held a press conference on Friday night at 8 p.m. to address the situation around Mexico and OPEC.
– The United States wants to help Mexico. We are going to cut what is missing. And then they will return the money to us at a later date when they are ready to do so. We had a good conversation, Trump said.
He noted that he does not know if this is accepted by the other oil-producing countries in Opec +.
After Mexico’s energy minister Rocío Nahle allegedly left the OPEC + meeting last Friday, there was speculation about what the country will do to help reduce oil production. Nahle even tweeted that the country would cut 100,000 barrels per day, which is well below OPEC’s desire for 400,000 barrels.
Trump, who recently spoke with Mexico’s President Andrés Manuel López Obrador, commented that the United States can take the remaining cuts.
– I get it right. The problem is that you are going to sell the oil for $ 5 or $ 10 per barrel, I told him, Trump answered questions from the press.
