Russia, Arabia to cut output to 8.5 mln bpd May–Jun, if Mexico joins

MOSCOW/BAKU, Apr 10 (PRIME) -- Russia and Saudi Arabia have agreed to produce no more than 8.5 million barrels per day in May and June as the OPEC plus deal participants prepared a cooperation declaration to adopt if Mexico agrees to cut output, according to the documents seen by PRIME late on Thursday.

"A new Declaration of Cooperation was adopted at the ninth meeting of OPEC held in the form of a video call after discussions that lasted for 11 hours on condition that Mexico agrees with the proposed volume,” a statement of the Energy Ministry of Azerbaijan read.

“It is noteworthy that the new Declaration of Cooperation envisages a three-stage decrease of daily oil production from the level of October 2018."

Under the agreement worked out at a meeting that ended late, Russia and Saudi Arabia's production can amount to no more than 9.02 million barrels per day in July–December and 9.46 million barrels per day in January–April 2021. 

If the declaration enters in force, the OPEC plus states would cut production by 10 million barrels in May–June, which is a 23% reduction from the level of October 2018. Daily output reduction in July–December 2020 is planned at 8 million barrels, a 18% reduction.

In January–April 2021, OPEC plus would cut production by 6 million barrels. The obligation of OPEC will amount to 3.651 million barrels, of the non-OPEC participants at 2.394 million barrels, a 14% overall reduction.

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