Members of the Organization of the Petroleum Exporting Countries, OPEC+ and producing nations agreed to reduce oil production by 10 million barrels per day during May and June, to stabilize oil prices after the economic impact generated by COVID-19.
Through a statement was reported that before the end of the year will be made another reduction of 8 million barrels per day.
In this regard, a spokesperson for the Azerbaijani Ministry of Energy explained that “the new Declaration of cooperation stipulates three stages of the cut in daily oil production compared to October 2018 levels”.
The first stage, which goes from May to June of this year, estimates a cut of 10 million barrels per day (mb / d), which represents 23%.
Regarding this first phase, the spokesperson detailed that OPEC countries commit to [a cut] 6,085 mb/d, and 3,915 mb / d. for non-OPEC countries ”
Then, in the second stage that goes from July to December, was proposed the reduction of 8 million barrels per day, which represents a decrease of 18% compared to October 2018.
The third stage begins in January 2021 until April 2022, whose cut will be 6 million barrels per day, which is 14% less than in October 2018.
In this last stage it would correspond to 3,651 mb / d for Opec members and 2,394 mb / d, for non-Opec countries, respectively.
The spokesperson clarifies that these amounts refer only to the production of crude oil, without taking into account the volumes of condensate.
In the statement, OPEC + states that it hopes that with this reduction in production it will be possible to stabilize and maintain crude oil prices, given the vertiginous decline they have registered in March of this year as a result of the health situation of the new coronavirus and the failure of the negotiations. This collapse in oil prices has negatively impacted financial markets worldwide.
