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In January 2021, the total production limitation of the OPEC + countries will be 7.2 million barrels per day, said the Ministry of Energy of Kazakhstan.
The OPEC + countries agreed to increase oil production by 500 thousand barrels per day from January 2021. This was announced on December 3 by the press service of the Ministry of Energy of Kazakhstan after the results of the meeting of the ministries of OPEC + countries in videoconference format.
“The countries participating in the OPEC + agreement have agreed to hold monthly ministerial meetings starting in January 2021 to review the current state of the oil market and adjust the additional level of restrictions,” the statement read.
The total production limitation of OPEC + countries in January 2021 will be 7.2 million barrels per day from baseline, the department said.
Bloomberg, citing a delegate, said that the OPEC + countries will continue to compensate for unreduced oil production under the oil deal until March 2021.
The OPEC + countries announced a 15% decline in world oil production on April 10. The deal was reached a month after the cancellation of the previous deal, causing a record drop in commodity prices. On March 9, the price of Brent oil plummeted 30% to $ 33 a barrel, which was the highest daily drop since 1991, when the Gulf War began. On March 30, the price of Brent fell below $ 23 a barrel.
However, due to a record drop in demand for raw materials due to the coronavirus pandemic and the resulting industry shutdown, oil prices continued to fall. Then, on April 20, the May futures price for the US WTI for the first time in history turned negative: prices fell to minus $ 40 per barrel. It also caused a price collapse on the European spot market (contracts entered into on this market are executed immediately). The estimated price of Russian Urals benchmark oil fell to minus $ 3 a barrel, and North Sea Brent benchmark crude oil fell to minus $ 3.5.
Oil prices returned to the level prior to the record drop on April 30, on the eve of the entry into force of the OPEC + agreement on a record reduction in oil production. In mid-May, OPEC announced that the oil crisis was over.
