Equatorial Guinea Supports OPEC+ Agreement Whereas Ecuador Leaves OPEC
Equatorial Guinea will continue to support the OPEC+ agreement on oil production cuts to stabilize the prices, said Gabriel Lima, the Minister of Mining and Hydrocarbon Resources. Lima considers 60-70 USD per barrel to be the optimal price for sellers and buyers.
The agreement of OPEC and OPEC+ countries on the reduction of oil production has been in force since the beginning of 2017. Its action has been repeatedly extended, and the conditions have changed. For the first half of 2019, it was agreed to reduce production in the amount of 1.2 million barrels per day. In July, OPEC+ participants extended the agreement on the same terms for another nine months until April 2020.
Meanwhile, Ecuador plans to quit the OPEC from January, 2020. This decision has been made to improve fiscal stability, reduce government costs and increase revenue. The national government will continue to make efforts to stabilize the global oil market. According to the September report of the OPEC, Ecuador's oil production in August amounted to 537 thousand barrels per day. The country also entered into the OPEC+ agreement and committed reducing production by 16 thousand barrels per day, i.e. to 508 thousand barrels per day.