Daily Management Review

Saudi Arabia will seek to reduce production


The collapse in the oil market continues. The coronavirus spreading around the world is crushing the market: the epidemic will lead to the shutdown of enterprises, lower fuel consumption and, naturally, a drop in demand for black gold.

Experts believe that OPEC will intervene in the situation in the near future. The next ministerial meeting of the cartel and its partners under the OPEC+ agreement will be held on March 5-6. According to Mohammed Barkindo, Secretary General of the organization, the participating countries demonstrate their readiness to reach an agreement that will help stabilize the market.

The company’s head at the upcoming OPEC + meeting will be Saudi Arabia, which intends to achieve a significant reduction in oil production by the participating countries. According to the Financial Times, Riyadh wants to reduce the total production of black gold by an additional one million barrels per day, compared to 600 thousand recommended by the cartel’s technical committee earlier. Thus, according to the idea of the Saudis, the total amount of the daily limit will exceed 3 million barrels.

At the same time, Saudi Arabia is ready to take the main work on the implementation of this additional agreement, and Russia, Kuwait and the UAE should share the rest of the burden.

source: reuters.com