OPEC+ agreement has practically fulfilled its task-Alexander Novak

The OPEC+ agreement normalized the situation in the world oil industry. This was stated by the Minister of energy of Russia Alexander Novak.

"In my opinion, this agreement has practically fulfilled its task of leveling the crisis point, when prices fell sharply, and even fell in December 2016 to $27...  It was absolutely the right decision to ensure a reduction in production in general by 1.8 million barrels, which removed the excess oil residues in the world markets and significantly gave us the opportunity to return the situation to normal as in terms of prices, and in terms of investment in the industry", — RIA Novosti quoted Novak.

OPEC and a number of non-member countries (OPEC+) agreed at the end of 2016 in Vienna to reduce oil production by 1.8 million barrels per day from the level of October 2016, 300 thousand of which fell on Russia. The deal started at the beginning of 2017 and was extended twice, the last time-until the end of 2018.

In June 2018, OPEC+ agreed on the goal to avoid over-fulfillment of the transaction. As the Ministers of energy of Russia and Saudi Arabia specified, in practice it will mean an increase in production by 1 million barrels per day, including Russia — 200 thousand.

Related news

2014