the Kremlin had considered that the new deal OPEC+ held. Press Secretary of the Russian President Dmitry Peskov said: “Putin really appreciates a coherent document that became the compromise of 22 countries”. And said Moscow appreciates the “constructive position taken by the Mexican party” and “the Kremlin welcomes the accession of Mexico to the final document, which will have a positive impact on the world market”.
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 quoted the words of President andrés Manuel lópez Obrador. The rest of the share of Mexico production cuts will take on the United States. “President trump announced that the United States will agree to cut production by 250 thousand barrels per day in order to compensate for the share of Mexico,” said Lopez Obrador. According to him, the agreement was reached during telephone negotiations with the American President.
the preliminary parameters of a future agreement is as follows. Saudi Arabia and Russia cut oil production to 2.5 million barrels per day each. Their daily baseline level of production of “black gold” (if you believe the official figures that the two countries until the last moment had extracted no more than 11 million barrels per day), will amount to 8.5 million “barrels”.
Moscow and Riyadh went to the main production assignment. Collectively OPEC+ for may-June production will decrease by 10 million barrels a day. Then from July through December, the total volume reduction will fall to 8 million barrels per day, and from January until the end of 2021 April 2022 —up to 6 million For all countries except Russia and Saudi Arabia, the level of clipping production is determined by October 2018.
But what about the General background looks Mexico that made people talk about him in the last hours the whole world is interested in the fate of the oil deal?
“Mexico has produced of 1.78 million barrels. In the framework of the.key OPEC+ her proposed “shrink” to 1.38 million, but it was ready to go, only for 1.68 million despite the fact that its reduction is planned at a smaller scale compared to the “leaders” of cuts — Russia and Saudi Arabia (2.5 million), Iraq (1 million), UAE (700 thousand), Nigeria (450 thousand),” — said the chief analyst of “Teletrade” mark real.
the Mexican side explained its position as follows. Although the major players of the industry volume decline is much more, but their reduction will not lead to such enormous damage that can feel this country after the restrictions within OPEC+. “The Mexican oil industry is degraded in recent decades. The volume of production falls each quarter, and without any effort on the part of the government — in the early 2000-ies, the country produces about 4 million barrels per day. Low prices and falling global demand has worsened the situation in the country: at the end of April this year, the Mexican drilling activity has decreased to 1.6 million barrels a day. Coronavirus hurts the Mexican economy. The President said that the country is not able to help the business, as the reserves were only $10 billion for a “rainy day”. The business coordinating Council of Mexico predicts that by the end of 2020, a drop of GDP of 7% and massive layoffs — work may lose 1.2 million people,” cites the Director of the Academy of management Finance and investment Mr. Dadashov.
Now, the OPEC deal+ in the new format will approval, which is likely to be followed by the conference of energy Ministers of “big twenty”, which is scheduled to start on 10 April at 17.00 Moscow time.
Read also: the Kremlin has announced the results of the transaction OPEC+