OPEC to cut production by 500 thousand barrels of coronavirus

Moscow, February 3 – “News.Economy.” Countries-participants of agreements on the reduction of oil production (OPEC+) can cut production by 500 thousand barrels a day because of the situation with coronavirus, writes Reuters citing sources familiar with the situation.

“OPEC and its allies consider the possibility of additional reduction of oil production by 500 thousand barrels per day due to the impact of coronavirus on the demand for oil,” – says the Agency.

in addition, sources reported that OPEC+ considering holding a Ministerial meeting on 14 and 15 February, although earlier it was planned in March.

As he wrote, “to Lead.Economy”, OPEC+ will hold a meeting of the technical Committee before the initial plans for the analysis of the situation with coronavirus and its impact on the oil market.

“the Meeting is scheduled for Tuesday-Wednesday (February 4-5)… Initially wanted to hold a Ministerial meeting in March,” he said.

it was Reported that the Alliance will continue to discuss the transfer to the earlier period of Ministerial meetings that were previously scheduled for 5-6 March, but so far no final decision. The media the information appeared that this idea discussing Saudi Arabia and the other OPEC members+.

the Agreement by OPEC and several non-organisation countries (OPEC+) on the reduction of oil production is valid from the beginning of 2017, It has been repeatedly extended, and the terms changed.

Until the end of 2019. the agreement provided for the reduction of production by 1.2 million barrels per day compared to October 2018, and in the first quarter of 2020, the Alliance intends to cut production by 1.7 million barrels.

fate deals OPEC+ should be specified on the plan March 6 meeting of the Alliance in Vienna. Text: News.Economy