US President Donald Trump
WASHINGTON – OPEC+ are trying to bring total reduction of oil production to 20 million barrels per day, US President Donald Trump wrote on Twitter on Monday.
"Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 million barrels a day, not the 10 million that is generally being reported. If anything near this happens, and the World gets back to business from the Covid 19 (coronavirus disease 2019) disaster, the Energy Industry will be strong again, far faster than currently anticipated," he tweeted.
"Thank you to all of those who worked with me on getting this very big business back on track, in particular Russia and Saudi Arabia," he added.
On April 12, OPEC+ countries at an emergency meeting managed to finalize a deal to reduce production in May and June. The negotiations on this new deal began on April 9.
The final quota for reducing production over two months will be not 10 million barrels per day but 9.7 million barrels per day since Mexico agreed to take a smaller quota than it was expected.
Under the new agreement, Russia and Saudi Arabia will reduce their oil outputs equally by 2.5 million barrels per day from the base level of 11 million barrels per day.
The agreement will be valid for two years. From July to December 2020, the daily oil production reduction quota will be 7.7 million barrels per day; and from January 2021 until the end of April 2022, it will be 5.8 million barrels per day. The terms of the transaction may be revised in December 2021.
After the OPEC+ online ministerial conference, a source told TASS that from May 2020, total reduction in production by OPEC + countries and other large oil exporters can reach 20 million barrels per day. (TASS)
