Categories: Business

OPEC and Russia agree to extend oil production cut

Photo: GOOGLE

Crude production cut

new Delhi. OPEC and other oil producing countries associated with it have decided to extend the reduction of 10 million barrels per day a month. The reduction of about one crore barrels per day in production will now continue till the end of July. This step has been taken in the hope of stabilizing the market given the situation arising out of the corona virus. The decision was taken at a meeting of video-conferencing of OPEC countries and countries outside of Russia, led by OPEC. The objective of this step is to reduce the production according to the demand so that the fall in prices can be stopped. Due to the Corona crisis, lockdown-like conditions persist in many countries, affecting the demand for crude oil. The total reduction in production accounts for about ten percent of the global supply. Although many countries have now relaxed the lockdown, there is a risk in the crude oil market.

OPEC Chairman and Algerian Petroleum Minister Mohammad Araqb has warned that by the middle of this year, global crude oil storage has increased by 1.

Will reach 5 billion barrels. Arkab said that despite the progress made in this direction till date, we cannot relax our efforts yet. Saudi Arabia's Petroleum Minister Abdulaziz bin Salman also said that everyone has tried to reach where we are today. Salman said that in April, the day US oil futures came down to zero, they were shocked.

This post was published on June 7, 2020 11:50 am

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