Saudi Arabia And Russia Cannot Reach An Agreement About OPEC+ Deal
Saudi Arabia contacted a number of OPEC+ countries about the deal in April. The kingdom's positions with Russia have not yet converged, it is going to insist on maintaining the production of the alliance at the current level.
OPEC+ has cut oil production by 9.7 million barrels per day since May 2020 due to the drop in demand caused by the COVID-19 pandemic. As the situation improved, the restrictions were adjusted, and as of February of this year they amount to 7.125 million barrels per day. Moreover, only the Russian Federation and Kazakhstan received the opportunity to slightly increase production.
At the same time, in March Saudi Arabia on a voluntary basis will additionally reduce production by 1 million barrels per day. A number of OPEC+ countries will also cut their production, and considering their participation, the total reduction by January is 1.425 million barrels per day. In February the reduction is 8.55 million barrels per day.
The next meeting of the monitoring committee of the alliance will be hold on March, 3. The meeting of all countries participating in the OPEC+ agreement concerning the decision on the further fate of the deal will be on March, 4. OPEC+ is currently adjusting production in increments of no more than 500 thousand bpd per month.