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Coronavirus: OPEC+ countries to consider new "substantial" oil output cuts  

Published on : Tuesday, 03 March 2020 17:47   Read : 0 time(s)
Coronavirus: OPEC+ countries to consider new "substantial" oil output cuts  

ALGIERS – The Organization of Petroleum Exporting Countries (OPEC) and its partners, named OPEC+, plan to consider new "substantial" oil output cuts, while a consensus on extending the current cut deal seems to be already "reached," said Minister of Energy and Chairman of OPEC Conference Mohamed Arkab.

"We will examine the possibility of new substantial output cuts, by withdrawing quantities (from the market) which are not consumed due to the spread of the coronavirus," Arkab said in an interview to APS.

 The 25 OPEC + ministers will meet on Thursday and Friday in Vienna to determine the appropriate measures to halt the fall of crude oil prices caused by the coronavirus epidemic.

This ministerial meeting will be preceded on Wednesday by a meeting of the OPEC-non-OPEC Joint Ministerial Monitoring Committee (JMMC).

During their extraordinary meeting, the OPEC + countries will examine the proposals made in early February by the Joint OPEC-Non-OPEC Technical Committee, which recommends extending the current output cut deal (1.7 million barrels per day), until the end of 2020 and to conduct new cuts until the end of the 2nd quarter.

 "We will examine these two proposals to find a consensual solution to restore the oil market stability. We are likely to maintain cuts approved in December 2019. We already have a consensus between the OPEC and not OPEC countries, including Russia. Regarding the additional cut, we will have to discuss it on March 4, 5 and 6," explained Arkab.

 In this regard, the chairman of the OPEC Conference said that the cartel oil ministers supported the JTC recommendations that further substantial cuts are necessary, adding however that the volume of cuts was yet to be defined.

 "Some countries (except OPEC) asked for more time to assess the impact of the spread of the coronavirus on the oil market before making official statement at our meetings in Vienna. We will have the opportunity to hear their views on the oil market and jointly draw up a concrete action that will allow us to stabilize the oil market, in a view to reviving the global economy, the oil industry and the producing countries," he noted.

 The minister said that the discussions will be based on studies on the coronavirus epidemic impact on the evolution of the global economy and the state of supply and demand, in order to take decisions that "will suit everyone, while working to protect the market stability and prices which must be in line with market realities and the expectations of producing countries."

 "Each country will come with the ambition to seek a consensus to avoid the collapse of prices. It is clear that it is important to maintain the Declaration of Cooperation as a tool for stabilizing the market and why not a consensus on further major cuts to absorb excess quantities that are on the market," he said.

Last modified on Tuesday, 03 March 2020 20:03
Coronavirus: OPEC+ countries to consider new "substantial" oil output cuts  

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