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OPEC Unveils Levels of Cuts

Friday 18 January 2019

MOSCOW (TASS) — OPEC has published data on the levels of reduction in oil production by OPEC + countries as part of the agreement reached at the meeting on December 7 in Vienna. Saudi Arabia, which is the largest oil producer among OPEC states, will reduce output by 322,000 barrels per day.

In the first half of 2019, OPEC+ countries will reduce oil production by 1.195 mln barrels per day to 43.874 mln barrels. In particular, OPEC member states are to reduce production by 812,000 barrels per day to 25.937 mln barrels, non-OPEC oil producers by 383,000 barrels per day, to 17.937 mln barrels.

Since the beginning of 2017, the implementation of the agreement on the reduction of oil production has reached a level of 116%, the organization said in a report.

Saudi Arabia, which is the largest oil producer among OPEC states, will reduce output by 322,000 barrels per day to 10.31 mln barrels. Russia is to reduce production by 230,000 barrels per day to 11.191 mln barrels.

In percentage terms, the actual reduction in production of OPEC countries should be 3.02%, taking into account the exceptions made for Iran, Libya and Venezuela, rather than 2.5%, as was reported immediately after the meeting. Non-OPEC countries will cut production by 2%.

The ministerial monitoring committee will continue to monitor the implementation of the transaction on a monthly basis. According to the statement, the countries voluntarily undertook these obligations.

The next meeting of the monitoring committee will be held in Baku on March 18.

Earlier a source in OPEC told TASS that the publication of data on production cut quotas will make it possible to overcome the market scepticism around the December decision.

After the OPEC+ decision on oil production cut was made, Brent crude price dropped by more than $10 to $49.3/barrel.

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