The Minister of Mines and Energy, Bento Albuquerque, said last Friday (10), that the agreement between Russia and Saudi Arabia, to reduce oil production, will contribute to the stabilization of product prices on the international market, informs “Agência Brasil”. Albuquerque participated in a videoconference between energy ministers from G20 countries.
“I hope that the world can overcome this unprecedented crisis as quickly as possible and I am certain that we, in the energy sector, have a fundamental role to play in making this possible. In this sense, Brazil congratulates Saudi Arabia and the OPEC+ countries for the agreement, which will contribute to the stabilization of the oil market”, he said.
The agreement between oil producing countries foresees reducing world production by ten million barrels per day, around 23% of total daily production, between May and June, and by eight million barrels per day, between July and December. On one side is Saudi Arabia, which leads the Organization of Petroleum Exporting Countries (OPEC), and its allies, a group known as OPEC+. On the other, the rest of the oil producing countries, led by Russia.
The crisis caused by the coronavirus pandemic unbalanced a market in which global supply was already in excess and the drop in global demand for fuel put downward pressure on international oil prices. Furthermore, Russia and Saudi Arabia were locked in a dispute over oil production and prices. In March this year, the price per barrel closed below US$ 30. Last year, the commodity was traded between US$ 60 and US$ 70 per barrel.
The meeting between G20 ministers served to discuss the effects and measures to combat the COVID-19 pandemic on the energy sector. During his speech, minister Bento Albuquerque said that the Brazilian government has no influence on the oil market, but highlighted the reduction in Petrobras' production.
“The company, based on its business plan, has already reduced its production by 200 thousand barrels of oil per day, which represents 20% of Brazil's total oil exports. Petrobras also reduced fuel production in its refineries, due to the downturn in international markets and the drop in domestic consumption, as a result of COVID-19,” said the minister.
Source: DATA
