Photo: depositphotos/Kokhanchikov
Leading expert of the national energy security Fund, expert at Financial University under the government of the Russian Federation Igor Yushkov considers that the OPEC countries+ forced to come to an agreement on oil production so as not to aggravate the situation.
“the Current agreement intended to expand the number of participants. USA, as one of the largest manufacturers, not previously participated in such agreements, all waiting to see what they say. The situation is unprecedented, very strong fall demand, coronavirus everywhere, all administered measures of quarantine, because of this the planes do not fly, the car does not go, and so much oil is not necessary, as it was required in normal circumstances,” he explained to news Agency “national news service”.
the Expert added that the projected surplus in the region of 15 million barrels per day. In his opinion, all waiting for the General problem will be solved together.
If you do not, a month and a half the storage of oil in the world will overflow and everyone will be forced to halt part of its production. Yushkov recalled that Mexico had not consented to their quota, with her ongoing negotiations.
“a lot of uncertainty, many more questions remain to this agreement, but nevertheless it is meant just to delay the date when you fill all the storage”, he said.
Meanwhile, the President of Mexico, andrés Manuel lópez Obrador said that the decision to cut oil production in the country per 100 thousand barrels per day agreed with the American head of Donald trump. The US promised to further cut production to 250 thousand barrels per day.
OPEC Ministers+ was planning to complete talks on production cuts on Friday, April 10. They needed support from Mexico. Other States agreed on the reduction.
the OPEC Agreement regarding the reduction of oil production ended in late March. Extend it failed because of disagreements between Russia and Saudi Arabia. As a result, countries began to increase oil production, while world oil demand has fallen sharply due to the epidemic of the coronavirus. This is reflected in the exchange rate.
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