OPEC, Russia seen easing oil production cuts from August - sources

  • In Business
  • 2020-06-30 14:54:27Z
  • By Reuters
OPEC, Russia seen easing oil production cuts from August - sources
OPEC, Russia seen easing oil production cuts from August - sources  

By Rania El Gamal, Alex Lawler and Vladimir Soldatkin

LONDON (Reuters) - OPEC and Russia will likely ease record oil production cuts from August as global oil demand recovers and prices have bounced back from their lows, four OPEC+ sources told Reuters.

OPEC and its allies including Russia, know as OPEC+, have agreed to cut production by a record 9.7 million barrels per day, or 10 percent of global demand, from May to support oil prices as demand plunged because of the coronavirus pandemic.

Record cuts were meant to last until the end of June but then had been extended into July. The sources said no discussions have taken place so far about extending the record cuts into August, meaning they were most likely to be eased to 7.7 million bpd until December.

"A further extension is unlikely unless there is another downward move in demand," one OPEC source said.

Key OPEC+ ministers will meet in mid-July at a panel, known as the Joint Ministerial Monitoring Committee (JMMC), to recommend the next level of cuts.

Oil prices have recovered to above $41 a barrel from a 21-year low below $16 a barrel in April, helped by OPEC+ cuts and a recovery in demand as governments ease coronavirus lockdowns.

Saudi Arabia, OPEC's de facto leader, and Russia have to perform a balancing act of pushing up oil prices to meet budget needs while not driving them too high to avoid a resurgence of U.S. shale production.

Russian Energy Minister Alexander Novak said this month Moscow was happy with the current oil price. U.S. output has plunged by a record 2 million bpd, but there are signs it is recovering quickly.

(Additional reporting by Ahmad Ghaddar and Dmitry Zhdannikov; writing by Dmitry Zhdannikov; editing by David Evans)


More Related News

Russia is killing US soldiers. Trump
Russia is killing US soldiers. Trump's response is a shameful dereliction of duty
  • World
  • 2020-07-07 09:25:10Z

He has probably known for months, yet he continues to praise Putin. The American president is not looking out for the American peopleDonald Trump's response to Russia's attempts to kill American soldiers in Afghanistan is a dereliction of duty, and yet another sad reminder that the actions of the US president cost American lives.Numerous reports detail how the Trump administration - and the president himself - were aware as early as 2019 that Russia had been offering bounties to Taliban fighters in Afghanistan to kill US soldiers. The United States reportedly has evidence of money transfers from a bank account controlled by Russian military intelligence to a Taliban-linked account and has...

New Stories About Russian Bounties on US Troops Raise Even More Questions
New Stories About Russian Bounties on US Troops Raise Even More Questions

As this story has evolved, there has been a subtle but important shift in the main actor.

Russia cracks down on marmot hunting after bubonic plague alert
Russia cracks down on marmot hunting after bubonic plague alert

Russia said on Monday it had stepped up patrols to stop people hunting marmots near its border with China and Mongolia after the countries reported possible cases of bubonic plague, which can be carried by the animals. Authorities in Bayan Nur, a city in the Chinese region of Inner Mongolia, issued a warning on Sunday after a hospital reported a suspected case of the deadly disease. The Chinese region forbade the hunting and eating of the large rodents and asked the public to report any suspected cases, as well as any sick or dead marmots.

Constitutional changes are the
Constitutional changes are the 'right thing' for Russia: Putin

President Vladimir Putin said on Sunday constitutional amendments approved in a nationwide vote created the conditions for Russia's "progressive development" for decades to come. One of the changes approved in the week-long vote that ended on July 1 makes it possible for Putin to seek two more terms as president and, if re-elected, to stay in power until 2036. "They will strengthen our nationhood and create conditions for the progressive development of our country for decades to come," he said.

Moscow Has a Field Day With Trump
Moscow Has a Field Day With Trump's Fireworks at Mt. Russia-More
  • World
  • 2020-07-05 14:50:11Z

Kremlin-controlled Russian state media set out to tickle U.S. President Trump's fragile ego amid falling ratings after his blustery appearance at Mount Rushmore on Friday. Mentioning that the American head of state had previously toyed with the idea he might be featured alongside Washington, Jefferson, Teddy Roosevelt, and Lincoln, Russia's premier state media channel Rossiya-1 aired a graphic of Trump's mug right up there on the mountain beside them. Given the frequent allusions on Russian state media to Trump as Moscow's friend, even Moscow's "agent" in the White House, maybe the Kremlin would like to see the enormous monument renamed Mount Russia-More. But there were signs on Saturday,...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business