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OPEC+ Agrees on Oil Production Cuts for February and March

Tuesday 5 January 2021

MOSCOW (TASS) — The OPEC+ countries agreed on the parameters for cutting oil production in February and March, which will amount to 7.125 mln bpd, two sources in OPEC told TASS.

In January, the OPEC+ countries increased oil production by 0.5 mln bpd, and At the present the level of production reduction reaches 7.2 mln bpd. Earlier the deal participants planned to increase it every month in the amount of no more than 0.5 mln bpd. Moreover, each step in terms of the extraction must have been approved at a separate meeting. However, a new strain of coronavirus intervened in the plans of oil exporters, and has already caused a series of new lockdowns in European countries.

However, in February and March Russia and Kazakhstan will be able to increase their production by 75,000 bpd (65,000 and 10,000 bpd respectively). This increase in production will be offset by a proportional and voluntary production cut by Saudi Arabia, sources told TASS. “This compromise allows Russia and Kazakhstan to get what they wanted — an increase in production. Everyone else is also satisfied, because in the end the supply will not grow”, said one of the agency’s interlocutors.

Another confirmed that Saudi Arabia has voluntarily expressed its willingness to cut oil production.

According to TASS sources, Russian Deputy Prime Minister Alexander Novak and Saudi Arabian Energy Minister Prince Abdulaziz bin Salman held separate bilateral talks on Tuesday before the meeting in full force.

The next meeting of the OPEC+ countries will take place in early March.


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