OPEC+ renew an agreement to limit oil production on the same terms for another month. According to the agreement, from July they will comply with the restriction of output of 9.6 million barrels per day — which is slightly less than in may and June, since the extension of the deal has not yet agreed Mexico. On the eve of the meeting, the parties to the agreement tried to ensure commitment to the deal, Iraq and Nigeria, which do not fully comply with their quotas.OPEC Ministers agree to maintain the current agreement on production cuts. In may and June, the parties to the agreement followed the General quotas to 9.7 million b/d. and, according to the original agreement, this quota was reduced by 2 million b/d since the beginning of July. Now in July the quota would be retained, albeit in a slightly smaller size — 9.6 million b/d, as Mexico has not yet agreed to the extension of the deal and its quota of 100 thousand b/d is not taken into account.As indicated in the draft decision on production cuts will be in force subject to the “principle of compensation by countries that are unable to implement the agreement to 100% in may and June, to ensure necessary adjustments of production in July, August and September 2020, in addition to their already agreed upon quotas for these months” (quoted by “RIA Novosti”).The parties discussed the issue of violation of quotas a number of countries, particularly Iraq and Nigeria, but they promised to compensate for the lack of production cuts. “Nigeria is satisfied with gradual improvement in oil prices since the last meeting of the countries, and I urge all producers to continue to make the necessary sacrifices to preserve the benefits achieved as a result of the agreement,”— said the Minister of oil of Nigeria, Timipre Silva on Twitter.We will remind, according to the deal, concluded in April, OPEC+ went to the largest ever production cuts. In July, Russia and the OPEC countries had to go the weakening of the conditions. Instead, at the suggestion of Saudi Arabia the parties to the transaction kept the quota reduction. According to analysts, for Russia, maintaining the current quota means a further reduction in the production of 2 million tonnes per month compared with the original agreements.Minister of energy of Russia Alexander Novak said on 4 June that in may the excess supply will be reduced to 7 million b/d, and in July it is already possible shortage of 3-5 million b/d depending on the parameters of the deal.Dmitriy Cozlovschi represent the participants and antagonists OPEC+Read more
