Oil prices rise in global markets due to decline in production 8l
Jeddah (UrduPoint Newspaper-International Press Agency – 13 April – 2020) To reduce global oil market output after major demand from global oil producing nations to reduce global demand due to the Corona virus. The deal increased the price of oil. The Organization of Petroleum Exporting Countries (OPEC), Russia, and other production groups, known as OPEC Pulse, held 9.7 billion barrels per day (bp) to maintain oil prices at their levels in May and June last day. D) agreed to reduce global production by 10%.
Brent crude futures oil prices rose 16 cents or 0.5% to 31.
Crow futures in the US West Texas Intermediate rose 37 cents, or 1.6 percent, to $ 23.13 a barrel. Daniel Yergen, vice president of Aish Market, says the deal has saved the global oil industry and other industries, including the national economy, from which it relies on a major crisis, saying that when the market situation returns to normal Adjusting will reduce the pressure on the oil industry.
Russian President Vladimir Putin, leader of the world’s 3 largest oil producing countries, US President Donald Trump and Saudi Arabia’s King Shah Salman hailed the OPEC Plus deal Donald Trump said it would secure jobs in the US energy industry. shall be. It is to be noted that last month, oil prices hit the record low in the global market. The decline in prices came after Russia’s decision not to reduce oil production and Saudi Arabia’s decision to increase production to punish Russia. Were.
The purpose of the deal is to protect the oil producing and exporting countries from major losses and balance prices. Under the agreement Mexico has agreed to reduce its oil production by one million barrels per day. It was decided in May that the total output of the OPEC Plus group’s crude oil will be reduced by 10 million barrels per day from May 2020. And the reduction in production will continue until June 30, 2020, while from the 1st of July, 2020 to December 31, 2020, the daily output will be 8 million barrels per day.
From January 1, 2021 to April 30, 2022 (16 months), the cumulative reduction in oil production will be 60 million barrels per day. The agreement also called on all major oil producing countries to participate in recent efforts to ensure stability in the global market ‘role of the Joint Ministerial Committee to oversee the production reduction agreement. The emphasis will be on coordinating with the OPEC Joint Technical Committee and the Secretariat.
Under the agreement, the assurance that the reduction in crude oil production will be based on information obtained from secondary sources will be held on June 10 this year through a webinar technology meeting. Additional measures will likely be taken to ensure equilibrium in the markets. Economists say it was necessary for the US to persuade oil-producing countries at any cost to reduce production as many of the biggest US oil companies were approaching bankruptcy in the worst case scenario in the oil market. General Chat Chat Lounge
Experts say the bankruptcy of US oil companies would have triggered an earthquake in the US economy which would have very negative consequences as the lockdown triggered by the Corona virus has rocked several companies and the companies demanded a bailout package from Washington. There are. Experts say the US and Arabs have a compulsion to stabilize the oil market, but Russia has no such compulsion because it has its own market. If Russia withdraws from the deal, the US and Arab economies will be bad.