Reuters: OPEC countries and Russia intend to meet to discuss the issue related to the next reduction in oil production

OPEC countries and Russia intend to hold a meeting to discuss the issue related to the next reduction in oil production. It is reported by Reuters, citing sources. The main reason for this was the decline in the cost of "black gold", the price of which has already fallen below $70 per barrel. All this was caused by an oversupply.

The meeting of the countries-participants of the international intergovernmental organization will be held from 3 to 4 June.

This time, the parties will again decide to reduce its (oil) production by 1 million barrels. Thus, taking into account previous production cuts, the cut will total 4,5% of world oil demand.

As Russian Deputy Prime Minister Alexander Novak said earlier, during this meeting, OPEC + countries determine what joint measures need to be taken to increase the economic efficiency of the oil market, based primarily on previous decisions.

As for the decline in oil production by Russia, then, according to the statistics of the Organization of Petroleum Exporting Countries, as of March this year, this figure amounted to 300 thousand barrels per day. Thus, for the first month of spring, this mark was at the level of 9,7 million barrels per day, although a month earlier this bar was 10 million barrels.

As Novak noted on May 4, today Moscow is reducing the daily production of "black gold" by 500 thousand b/d compared to February.

Recall that in October last year, the OPEC + countries decided to reduce production by 2 million barrels per day, starting in November. Already on April 2, a number of states that are members of the aforementioned organization, such as Algeria, Iraq, Kazakhstan, Kuwait, the United Arab Emirates, Oman and Saudi Arabia, as a preventive measure in order to maintain the stability of the oil market, announced an additional reduction in production from May to the end of 2023 . The total reduction, including the share of Russia, amounted to 1,66 barrels per day.

For reference: the average price of Urals oil as of June 1, 2023 was $55,44 per barrel, while Brent oil is trading at $75-76 per barrel, and WTI is $70,9 (against $69,97 .XNUMX a month earlier).

Comments

[Pavel_Sveshnikov]

This news is another confirmation of my observation that the world economy has shrunk by 2/1 in the last 3 years. I made this conclusion on the basis that during this period the prices of almost all goods increased by 50%, and at the same time, GDP remained practically unchanged (somewhere it grew a little, somewhere it fell a little, but there was no big growth). Consequently, goods began to be produced by 1/3 less, and they became more expensive to sell.

[antivirus]

And most importantly - how to manage the money received from the sale of resources.
The silence of the safes where the money grows.
Put in 300 billion - took out 1 billion in 330 year.
How to water the loot? And barrels are secondary.

[Vetal]

Saudi Arabia expressed dissatisfaction with Russia because of the volume of oil production. Riyadh officials believe that Moscow is not fully fulfilling its obligation to reduce it.

In April, both countries committed to cutting oil production by 500 barrels a day starting in May. However, Russian oil exports have been growing for several weeks in a row.

However, in May, Russia continued to supply the market with large volumes of oil, representatives of the oil industry and traders. As a result, the global glut increased, which led to a 10% decline in Brent prices. After the close of trading on May 26 on the London ICE exchange, Brent crude was worth $77,12, $2 lower than it was on March 31, a few days before the OPEC + decision to cut production.

[vovochkarzhevsky]

This is such a stupid question - what, you can not send excess oil to the domestic market in order to reduce the price of gasoline, kerosene and diesel fuel?
Although it is clear that it is impossible. The basis of a market economy is high efficiency. Or rather, lower costs, but more price. Moreover, each monopolist cares only about his own wallet, he does not care about the economy as a whole.

[Repellent]

Quote: vovochkarzhevsky

what, it is impossible to send excess oil to the domestic market in order to reduce the price of gasoline, kerosene and diesel fuel?

Can. But it will be bad for everyone - first for the budget, then for state employees, and then for everyone else.

Quote: vovochkarzhevsky

This is such a stupid question

Truly.

[vovochkarzhevsky]

Can. But it will be bad for everyone - first for the budget, then for state employees, and then for everyone else.

That is, from the fact that logistics, transport transportation will become cheaper, which means that the withdrawn funds can be directed to the development of the economy, it will become worse? Hmm, these are no longer brainwashed, but washed.

Indeed. yes

How. Well, so be it. I wish you and your family the highest prices and tariffs. After all, it's good for you.

[Repellent]

Quote: vovochkarzhevsky

That is, from the fact that logistics, transport transportation will become cheaper, which means that the withdrawn funds can be directed to the development of the economy, it will become worse?

No, what you listed will make it better. But not much.

But from the shortage in the budget of a very solid amount from oil and gas, it will get worse. Much.

Quote: vovochkarzhevsky

these are no longer brainwashed, but washed

The longer I look at you, the more I am convinced of this ... however, in parallel to me.

[vovochkarzhevsky]

Consider you won, my comment was deleted, like everything that contradicts the "general line".

[dump22]

All this was caused by an oversupply.

So who is throwing oil on the market now?
OPEC cut production. Russia too.

USA or Canada?
There are no more big players.