OPEC+ discusses oil production cut by 1 million b/d – Kommersant
[ad_1]
OPEC+ countries are discussing options for further oil production cuts. One option is to cut oil production by another 1 million barrels per day (b/d). This was reported Reuters with reference to sources.
Three OPEC sources told Reuters that in addition to the current cut of 2 million b/d, as well as the voluntary cut of 1.6 million b/d in April, an additional cut of 1 million b/d is being discussed.
According to the agency, such a reduction in production is due to the fact that oil prices fall to $75 per barrel, and market analysts are talking about a new supply glut. If this measure is approved by OPEC members, the volume of cuts will amount to 4.66 million bpd, or 4.5% of global demand.
A meeting of representatives of the OPEC+ member countries will be held tomorrow, June 4, in Vienna. Yesterday, June 2, other sources Reuters OPEC+ said further oil production cuts were unlikely.
Market participants fear that OPEC+ may further cut production to raise prices. Those fears were heightened by Saudi Energy Minister Abdel Aziz bin Salman Al Saud, who advised oil speculators to “be careful.” After this statement, futures prices for Brent and WTI crude oil grew by 1% and 1.2%.
According to Financial Times, the OPEC leadership has banned journalists from Reuters, Bloomberg and the Wall Street Journal from visiting its headquarters in Vienna tomorrow, June 4. According to the newspaper, this is due to the fact that due to the preliminary comments given by OPEC representatives to these media, oil prices are jumping.
[ad_2]
Source link
