Worldwide News: On Sunday, April 12, a videoconference held between the 10th OPEC+ Ministers. Russia and Saudi Arab’s energy ministers leaded the conference.
The COVID-19 has made negative impacts on global oil demand. KSA proved its role as a global energy leader to lessen the market imbalance.
KSA Oil Minister Prince Abdul Aziz Bin Salman stated that OPEC production cuts are almost more than 9.7 million barrels. The total number of OPEC production cuts is 12.5 MB/d.
OPEC production cut has added from KSA 1.3 MB/d, UAE 1MB/d and Kuwait 0.5 MB/d. In next 6 months from July to December reduction will be 7.7 MB/d, and in next 16 months from January(2021) to April(2022) reduction will be 5 MB/d. Extension of this agreement will be reviewed in December 2021. Russia will cut its output more than other countries about 2.5 MB/d in March. This agreement does not force U.S. to commit reductions.
Saudi Arabia leading diplomatic co-ordination efforts as a head of G20 and want other G20 countries to commit this on larger scale of reduction to stabilize worldwide energy markets. Prince Abdul Aziz Bin Salman has started giving interviews to U.S media, his point is that more G20 countries commit to stabilize global energy markets.
Saudi Arabia does not want to damage U.S. shale oil producers. KSA does not want to lower the other oil production companies, they have a single view that all producers come out from this de-stability. KSA only wants help in this hardship.
Oil market is suffering from big loss. KSA does not want to damage anyone, from past 3 to 4 weeks, though this pandemic COVID-19 has destroyed world economy.