Saudi Arabia has ordered state oil company Aramco to reduce oil production in June by 1 million barrels per day, in voluntary cuts that will add to supply reductions already agreed under an OPEC+ agreement, a representative of the Saudi Energy Ministry said. kingdom this Monday.
“This takes the total production cut that will be carried out by the kingdom to around 4.8 million barrels per day, compared to the April production level”, informed the government representative.
“As a result, the kingdom’s production in June, after the cuts to its target and volunteers, will be 7.492 million barrels per day,” he added.
Oil prices, which had been falling, briefly began to rise with the news, but then returned to negative territory.
Global demand for oil fell by around 30% as the coronavirus pandemic led to limitations on the movement of people around the world, reducing fuel use and increasing oil inventories.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, reached a deal last month to reduce production by 9.7 million barrels a day in May and June, a record cut. Producers should slowly relax cuts after June, but restrictions should remain in place until April 2022.
Under the deal, Saudi Arabia targets oil production of 8.492 million bpd in May and June.
The ministry also asked Aramco to reduce production in May from its quota level, “in consensus with customers.”
“The kingdom aims, with these additional cuts, to encourage OPEC+ participants, as well as other producing countries, to meet the production cuts to which they have committed, and to secure additional voluntary cuts in an effort to support the stability of global oil markets. oil,” said the Saudi government representative.
Source: Notícias Agrícolas
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