From may 1, entered into force an agreement in the format of OPEC+ on the limitation of oil production, in which the reduction in the first two months amount to 9.7 million barrels a day.
From July to the end of the year the reduction will be 7.7 million barrels, and the entire 2021 and 2022 to may-go — 5.8 million barrels. In the deal agreed to participate 23 countries.
the Maximum commitments took over Russia and Saudi Arabia, which agreed to remove from the market 2.5 million barrels, if measured from the level of 11 million barrels.
the Agreement was signed on 12 April. Then it was assumed that restriction of output will also a number of manufacturers from the countries of “Big twenty”, including USA, Canada, Norway and Brazil. Together they could add to reduce from five to ten million barrels.
However, while only Norway agreed to reduce production to 250 thousand barrels from June. The remaining formally of such intention, and did not declare the possible volume reductions did not indicate that he recognized including the Minister of energy of Russia Alexander Novak. In his opinion, the recovery in oil demand and, consequently, the rising cost in such circumstances is expected only in the third quarter of this year.
International organizations estimate the excess of supply over demand at 20-30 million barrels per day. This situation on the background of the coronavirus pandemic, caused overflow of storage facilities around the world and temporary care the value of WTI to minus $ 40 per barrel.
According to the International energy Agency, oil demand for the year will be reduced by 9 percent, gas demand by 5 percent and demand for coal — 8 percent.
