BAKU, Azerbaijan, May 18
By Nargiz Sadikhova - Trend:
Kazakhstan is carrying out its responsibilities within the framework of OPEC+ agreement, Kazakhstan’s Vice Minister of Energy Asset Magauov said, Trend reports with reference to the ministry.
Magauov reminded that in order to restore stability at the global oil market and global oil prices, the OPEC+ agreed to reduce oil production.
He said that OPEC+ agreement is necessary to exclude overstocking of oil storage facilities, as OPEC has changed its oil market forecast for a decline in global oil demand due to the coronavirus pandemic: OPEC forecasts that demand will drop to 81.3 million barrels per day in 2Q2020.
He added that all market participants were sympathetic to the need to reduce oil production, as these measures will give a positive impetus to the development of the oil industry.
“All companies which are included in the oil production reduction plan will have to decrease the output. Overall the oil production will have to decrease to 86 million tons in 2020. The export volume will depend on the local market demand,” he said.
On the morning of March 9, 2020, Brent crude plunged 25 percent dropping to its lowest since February 2016 and recording the biggest one-day percentage declines since Jan. 17, 1991.
Trading volumes in the front-month hit record highs in the previous session after a three-year pact between Saudi Arabia and Russia and other major oil producers to limit supply fell apart on March 6, 2020.
The extraordinary meeting of OPEC+ ministers was held on Apr. 12, 2020, following which the agreement to reduce oil production by 9.7 million barrels a day was signed for the period of two months starting from May 1, 2020.
Kazakhstan, in its turn, has supported the consensus in the agreement having taken the liability to decrease oil production by 390,000 barrels a day.
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