Report: Oil output cut of 10 mln bpd not to balance market – IEA

MOSCOW, Apr 3 (PRIME) – Reduction of oil production by 10 million barrels per day will not stabilize the market, Fatih Birol, executive director of the International Energy Agency (IEA), said in an interview to Bloomberg on Friday.

Even if the oil producing countries reduce their output by 10 million barrels, oil reserves may still rise by more than 15 million barrels a day in April–June, meaning that output reduction should be deeper. Still, the 10 million barrel reduction may become a good start and allow the market to buy some time, Birol said as quoted by Bloomberg.

In the current situation, the countries outside the OPEC+ agreement should also join the output reduction, and Saudi Arabia should unite all producers and consumers of oil as chairman of G20, he said.

On Thursday, Saudi Arabia called on oil producing countries to have an urgent meeting. A source familiar with the OPEC secretariat’s plans told PRIME on Friday that the countries would discuss the 10 million barrel cut at the meeting.

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