the Monitoring Committee of the countries-participants of agreements on the reduction of oil production (OPEC+) after a three-day meeting last week, recommended extending the deal and further increase the decline in production.
according to the statement of the President of OPEC, Minister of energy of Algeria Mohamed Arkaba, technomate recommended extending the deadlines for the reduction of oil production in the framework of the “Declaration on cooperation” before the end of 2020 and make additional adjustments to the production until the end of the first half of this year.
it was Also reported that the Committee OPEC+ wants to extend the deal due to the influence of the Chinese outbreak of the coronavirus in the world oil market.
At the same time, no certain amount of additional production cuts were not called. The head of OPEC will continue to consult with the parties to the agreement OPEC+ that all parties could reach consensus on the recommendations of the Committee.
As we learned earlier, the technical Committee OPEC+ in early February, immediately held a meeting and decided to cut oil production by 600 thousand barrels a day to reduce panic in the market.
Coronavirus brought down the price of oil by 15 percent and counting. The main consumer of the world oil market is China and the demand for resources in China fell 20 percent in January, or 3 million barrels.
the demand for oil in China in the beginning of the year were traditionally increased because of the holidays and active transport.