Western Europe's Largest Oil Producer Norway to Cut Production Starting June... First Time in 18 Years

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Norway, the largest oil-producing country in Western Europe, announced that it will reduce crude oil production starting in June. This move is aimed at responding to the oversupply of crude oil and the decreased demand caused by the novel coronavirus (COVID-19), marking the first time in 18 years that Norway has cut production.

According to AFP on the 29th (local time), Tina Bru, Norway's Minister of Petroleum and Energy, stated in a press release, "In June, we will cut production by 250,000 barrels per day, and thereafter maintain a daily reduction of 134,000 barrels until the end of this year," adding, "We will also postpone new oil field production plans until next year."

Minister Bru added, "The COVID-19 situation has created an unprecedented scenario, and stabilizing oil prices is best for both oil-producing countries and consumers."

Accordingly, the total daily crude oil production cap is planned to be maintained at 1.609 billion barrels in June and 1.725 billion barrels in the second half of the year.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ (a coalition of OPEC members and non-OPEC countries) agreed earlier this month to keep daily production below 10 million barrels in response to crude oil prices falling to their lowest level in the past 20 years.

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