OPEC technical committee meeting may be held in selector mode amid coronavirus outbreak
BAKU, Azerbaijan, March 12
By Nargiz Sadikhova - Trend:
OPEC joint technical committee meeting planned for March 18, 2020 could be held in selector mode due to coronavirus outbreak, Kazakhstan’s Minister of Energy Nurlan Nogayev said, Trend reports with reference to Kazakh media.
Nogayev said that the meeting has not been cancelled as of now.
“The meeting is still planned. However the meeting could be held in a selector mode, via telecommunication, in order to prevent coronavirus spreading,” Nogayev said.
Nogayev said previously that Kazakhstan is planning to maintain previously approved plan for oil extraction volume in 2020.
During the meeting held March 6, OPEC+ failed to reach any agreement on extension of the deal or deepening the cuts further, which led to a significant decline in oil prices.
On the morning of March 9, 2020, Brent crude plunged 25 percent dropping to its lowest since February 2016 and recording biggest one-day percentage declines since Jan. 17, 1991.
At the end of 2018, OPEC and a number of non-affiliated countries (Kazakhstan being one of them) decided to extend the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018.
A decision was passed in Vienna on July 2, 2019, regarding the extension of the agreement on the reduction of oil production by the countries of OPEC and non-members of the cartel until the end of the first quarter of 2020.
Kazakhstan has supported the decision to reduce oil extraction by additional 500,000 barrels a day within the framework of OPEC+ agreement under the decision made during the 7th OPEC and non-OPEC Ministerial Meeting held in Vienna, Austria, on Dec. 6, 2019.
Thus, latest liabilities of Kazakhstan within the agreement are 1.843 million barrels a day compared to 1.86 million barrels a day previously.
Follow the author on twitter: @nargiz_sadikh