OPEC + “fines” presented production reduction schedules
All of the OPEC + Alliance’s “penalties”, which in May didn’t completely cut oil production, presented their plans to offset obligations for the coming months. This was stated to the media by the head of the Ministry of Energy of the Russian Federation, Alexander Novak.
These production reduction schedules do not need an approval procedure, since the OPEC + agreement is voluntary, the minister noted. “Countries voluntarily say that they are ready to complete the deal,” Novak explained.
The head of the Ministry of Energy also added that Russia is “committed to the complete execution of the transaction.” “We will fulfill these obligations that we have taken upon ourselves,” he concluded. .
Which OPEC + countries turned out to be “fines”
Recall that the deal to reduce oil production by 9.7 million barrels per day began to operate in May. In this amount, OPEC + will cut raw material production by the end of July. However, in May, this plan was implemented only by 87%, since not all countries fully complied with their obligations.
Iraq, which ranks second in OPEC in terms of production volumes, reduced only 46% of its quota, and Gabon reduced 40%. The indicators were better in Kazakhstan – 71%, Angola and Nigeria – 74% each. Thus, OPEC + was not able to remove about 1.3 million barrels per day from the market in order to achieve a 100% complete deal.
There was a lag behind the promised rate of decline in production in OPEC + in the previous three years of the alliance's existence. But with significantly smaller volumes of production restrictions, this had little effect on the overall figure.
Moreover, Saudi Arabia, as the leader of OPEC, usually significantly exceeded its obligations, setting an example. Thus, the plan to reduce production by the alliance as a whole was often implemented by more than 100%. Everything changed when it came to unprecedented levels of restrictions. Indeed, under the current agreement, each OPEC + country donates almost a quarter of its production – 23%. : ///
Record OPEC + “fines” presented production reduction graphs first appeared TEKNOBLOG .
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