Saturday , April 1 2023

OPEC will publish new production quotas


OPEC plans to publish quotas this week for individual countries under the new OPEC / OPEC reduction agreement agreed on December 7, which has been in force since January 1, OPEC source announced to Russian news agency TASS on Monday.

The publication of quotas for each country could help overcome skepticism in the market with regard to the commitment of OPEC and its allies to implement the decision taken at the beginning of December under the TASS source.

In the current cutting period until June 2019, OPEC and Allies will withdraw 1.195 million lats from the market and will continue to produce 43.874 million bpd, according to TASS.

OPEC will wipe out 812,000 bpd, while outside OPEC countries the share of the transaction will reduce their total production by 383,000 bpd to 17,937 million. Russia will reduce production by 230,000 bpd to 11,191 million bpd, taking into account most OPEC cuts. According to TASS data, within OPEC, Saudi Arabia will produce 322,000 bpd of output to 10.31 million bpd.

The reports that OPEC will publish individual national quotas appeared for the first time in December, two weeks after the cartel and its allies decided to combine 1.2 million bpd in the first half of 2019 to halt the development of oil prices and balance the market.

Initial reports only after the meeting in Vienna in early December showed that OPEC and its allies would not have discovered what would reduce how much in the new deal.

But two weeks later, Reuters quoted OPEC Secretary General Mohammad Barkind in a letter:

"For the sake of openness and transparency, and to support market sentiment and confidence, it is very important that these production adjustments are publicly available."

“I urge your Excellencies to make positive statements to restore your countries' commitment to the decisions they make. It is very important to support our decisions and support ourselves from any naysayers who might question our commitment, ”says Reuters.

Author: Tsvetana Paraskova

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