without waiting for the entry into force of the agreement OPEC+ what should happen on 1 may, Saudi Arabia has begun production cuts, Bloomberg reports, citing sources familiar with the situation.
Probably, the Kingdom will fall to the target level of 8.5 million barrels per day before may. Informed ahead of time to reduce production started partners of Saudi Arabia in OPEC: Kuwait, Algeria and Nigeria, the latter explained this decision to a lack of demand for raw materials and storage facilities.
earlier In the week, oil prices are under pressure situation with warehouses around the world. Market participants fear that the situation with the may futures of WTI, April 20, fell to minus 40 dollars a barrel could happen.
the fact that 30 April is the deadline of the may futures of Brent crude, so traders can start to get rid of the paper at any cost.
the Transaction is OPEC+ should withdraw from the market of 9.7 million barrels per day. The experts estimate the excess of supply over production of 25 million barrels. Storage of excessive quantities of raw materials exporters have begun to actively use the tankers, because the seats in storage on land is almost over.
Russian energy Minister Alexander Novak did not rule out that the situation could lead to the collapse of the industry. According to sources Bloomberg, Russian companies might even have to burn excess raw material.
