BAKU, Azerbaijan, April 22
By Leman Zeynalova – Trend:
Iraq’s Deputy Prime Minister for Energy and Oil Minister Thamer Al-Ghadban didn’t rule out the possibility of taking additional measures by oil producing countries to balance the market, as he attended the informal video conference with the participation of several OPEC+ countries, Trend reports citing Iraq’s Oil Ministry.
The meeting was attended by ministers of Algeria, Nigeria, Venezuela, Kazakhstan and Azerbaijan, alongside with the OPEC Secretary General.
Al-Ghadban pointed out that the recently agreed oil production cut deal is one of the measures taken to offset the oil surplus in global market amid the coronavirus spread.
The minister did not rule out the possibility of taking additional measures by the producing countries, noting that it depends on the global market developments and the extent of the OPEC+ commitment to cut production.
The meeting participants discussed the implications of the sharp drop in oil prices, as well as measures that can be taken during the subsequent period.
Al-Ghadban said that the meeting heard a report by the OPEC Research Division on assessing the situation on the oil market during the current period and expectations for the next stage, especially after the recent OPEC+ agreement, which provides for a reduction of 9.7 million barrels per day.
OPEC+ has agreed to a 9.7mn b/d cut, effective May 1. The cut will be held in place until June 30, when it will be reduced to 7.7mn b/d. On January 1 2021, the volume will adjusted down once more, to 5.8mn b/d, and will be held in place until April 30 2022, subject to review at the December 2021 meeting. The OPEC+ cut is being backed by members of the G20, which have committed to support the market's rebalancing. However, this support will not take the form of a coordinated production cut, but will instead comprise a mix of involuntary output declines and strategic stockpiling. The exact volume that will be contributed by the G20 is unclear, but stands somewhere in the order of 5.0mn b/d.
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