OPEC+ Fails to Agree on Additional Oil Production Cuts... Russia Opposes

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Song Seung-yoon] Major oil-producing countries discussed additional production cuts in response to the decline in oil demand caused by the spread of the novel coronavirus infection (COVID-19), but failed to reach an agreement.

According to major foreign media on the 6th (local time), OPEC+?an alliance of 14 OPEC (Organization of the Petroleum Exporting Countries) member countries and 10 major oil-producing countries including Russia?held discussions in Vienna, Austria, on additional production cuts but failed to reach a consensus.

Earlier, OPEC held a ministerial meeting at its headquarters in Vienna the previous day to discuss a plan to cut an additional 1.5 million barrels per day. The plan involved OPEC members reducing production by 1 million barrels per day and non-OPEC countries cutting 500,000 barrels per day. Currently, OPEC+’s production cut scale stands at 2.1 million barrels per day.

Negotiations between OPEC members and Russia on this plan were conducted, but ultimately failed to secure Russia’s consent. Accordingly, according to dpa news agency, no agreement was reached on additional cuts or on extending the duration of the existing cuts, which are set to expire at the end of this month.

Alexander Novak, Russia’s Minister of Energy, stated that there will be no further negotiations on oil production volumes between OPEC and non-OPEC oil-producing countries. He said, “Considering today’s decision, from the 1st of next month, neither we nor any OPEC or non-OPEC country will be required to cut production.”

This content was produced with the assistance of AI translation services.