Baku to host OPEC+ discussions on impact of oil output cuts on markets
OPEC+ will measure the impact of the reduction of production on the oil markets to ensure a balance between supply and demand during a meeting to be held in Baku, Azerbaijan in February, Trend reports citing Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry of the United Arab Emirates (UAE).
In a statement to the Emirates News Agency, WAM, on the sidelines of the second day of the World Future Energy Summit in Abu Dhabi, Al Mazrouei said that the ministerial committee for production control will examine at its meeting expected in February in Azerbaijan the commitment to the agreed reduction rate between the OPEC member countries and the independent countries abroad,
Al Mazrouei stated that the oil markets are witnessing a gradual rebound, noting that the balance in production levels serves the oil producing and consuming countries.
OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
The 5th OPEC and non-OPEC Ministerial Meeting was held in Vienna, Austria, on December 7, 2018.
The meeting participants decided to adjust the overall production by 1.2 million barrels per day, effective as of January 2019 for an initial period of six months. The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will correspond to 0.8 million barrels per day (2.5 percent), and 0.4 million barrels per day (2 percent), respectively.
Source: TREND News Agency