andrés Manuel lópez
Gob.mx OPEC+ in the first day of the talks issued a statement which confirmed the intention to reduce oil production in may-June for 10 million barrels per day. However, by agreement, refused to join Mexico
vantuz / DepositPhotos
Mexico agreed to connect to the OPEC agreement regarding the reduction of oil production on the waiver of production of 100 thousand barrels per day, Reuters reports, citing the country’s President Andres Manuel Lopez Obrador. The rest of the share of Mexico production cuts will take on the United States.
as part of the deal with Mexico the total reduction will amount to 350 thousand barrels per day. On the eve of the decision of OPEC+ was postponed to Friday because of the position of this country.
“President trump announced that the United States will agree to cut production by 250 thousand Barr. per day in order to compensate for the share of Mexico”, – quotes Lopez Obrador RBC.
Russian President Vladimir Putin said Friday that ahead of new talks on the subject of one hundredstabilize the oil market in the world.
the United States agreed to assume the obligations of Mexico to reduce oil production under OPEC agreements+
OPEC+ insisted that Mexico has reduced the amount of oil pumped by 400 thousand barrels, but the country did not agree with such terms. Because of the position of Mexico in the final negotiations on the deal was postponed to Friday April 10.
Recall that on Thursday OPEC+ in the first day of the talks issued a statement which confirmed the intention to reduce oil production in may-June for 10 million barrels per day. However, by agreement, refused to join Mexico. Previously the most unyielding were Russia, which is now ready to take on the largest share of the decline.
According to Reuters, the OPEC members+ pre-agreed that during may and June production will be reduced by 10 million barrels a day from 1 July to 8 million barrels per day, and from 1 January next year and April 2022 and 6 million barrels per day. The terms of the transaction arranged for all countries except Mexico, which has opposed the reduction of its own production by 400 thousand barrels per day.
the Next OPEC meeting+ scheduled for 10 June in the webinar format to determine further actions needed to balance the market. OPEC+ is also confirmed and extended the mandate of the Ministerial monitoring Committee (JMMC) and its members.
Analysts say that even a reduction of 20 million barrels is not sufficient to hold oil prices as world oil demand declined by 30% (30 million barrels per day). And in the US demand for gasoline fell by 48%, to 5.1 million barrels per day for three weeks until April 3rd.
OPEC and OPEC+
the Decision on the establishment of OPEC was taken at the initiative of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela at a conference in Iraq in September 1960. These countries subsequentlyperformance was joined by 10 States: Qatar (1961) Indonesia (1962), Libya (1962), UAE (1967), Algeria (1969), Nigeria (1971), Ecuador (1973-1992 HS), Gabon (1975-1994 years), Angola (2007), Congo (2018).
In 2016 due to falling oil prices, OPEC countries and the largest independent oil producers agreed to balance the market. On the basis of these agreements appears OPEC+, which includes, including, Russia, Mexico, Oman, Kazakhstan, Azerbaijan, Bahrain, Sudan.
At the end of 2016 OPEC countries agree on reducing oil production to 1.8 million barrels per day from the level of October 2016. The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%.
OPEC and OPEC+ affect the price of oil, but not install it. World oil prices are formed as a result of trades on the three major exchanges: the new York Mercantile exchange (NYMEX), Intercontinental Exchange (ICE Futures), Singapore Exchange (SGX).