Sunday , May 9 2021

OPEC and its allies plan to reduce oil production by 1.4 million barrels

Directly– OPEC and its allies next year are discussing a proposal to reduce production to 1.4 million bpd, according to a press release.

Reuters news agency quotes unnamed sources Wednesday that the proposal to reduce production options was discussed by energy ministers from Saudi Arabia, the United Arab Emirates and Russia on Saturday.

The source told the agency that reducing production by 1.4 million barrels a day is more appropriate than a reduction of more or less.

Producers inside and outside of OPEC launched a plan to reduce production at the beginning of 2017 after oil prices fell, before cutting the reduction rate in the past few months.

At the same time, sources confirmed that OPEC and its allies still do not agree with the final figure for reducing the new offer.

One source said that the minimum expected reductions would be a million barrels per day and would likely exceed the barrier of 1.4 million barrels per day.

The report said that Libya and Nigeria were included in the new agreement, which were excluded from the current cross-border warrant. "We are talking about reductions from every country, including Nigeria and Libya, as production has grown in the last few months."

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