The members of OPEC and OPEC+ will consider the possibility of progressively increasing oil production in August. About it reports Wall Street Journal.
According to the publication, the proposal appeared on the background of gradual recovery of domestic demand to the level that was prior to the adoption restrictions because of the pandemic.
Riyadh suggested the OPEC countries to mitigate the quota by 2 million barrels per day and to reduce 9.7 million and 7.7 million barrels per day.
Bloomberg reports that at the meeting of July 15, the participants will discuss whether to keep the current quota for another month or mitigate the adopted limits to 7.7 million barrels per day. According to the Agency, representatives of a number of delegations more inclined to the latter.
To reduce the level of global oil production by 15% OPEC+ announced April 10. The agreement was reached a month after the termination of the previous transaction that triggered a record drop in the price of raw materials. By 9 March the price of Brent crude oil has fallen by 30% – up to $33 per barrel, the biggest daily drop since 1991, when the war began in the Persian Gulf. On 30 March the price of Brent crude fell below $23 a barrel.
However, due to a record fall in demand for raw materials due to the pandemic caused by this coronavirus and stop the industry the price of oil continued to fall. So, on 20 April the price of may futures of WTI for the first time in American history was negative – quotations fell to minus $40 per barrel. It also triggered the collapse of prices on the European spot market (prisoners in this market contracts are executed immediately). The estimated price of the Russian benchmark Urals oil fell to minus $3 per barrel of North sea benchmark Brent crude to minus us $3.5.
The level to record fall of oil quotations returned on 30 April, on the eve of the entry into force of the agreement OPEC+ about record reduction in oil production. In mid-may, OPEC said that the oil crisis is behind us.