OPEC publishes on Friday the long-awaited list of oil production quotas for each country in the OPEC + trade, as it seeks to earn market confidence that the cartel and allies will do what it takes to relocate the market.
Opec and its non-OPEC partners led by Russia decided in early December to launch a new square round, aiming to raise oil prices, which began to plummet in October on fears of building oversupply and uncertain demand growth ahead. The OPEC + trade will be removing the combined 1.2 million BPD off the market in the first half of 2019. Initial reports after the meeting in Vienna in early December suggested that OPEC and its allies would not be cutting off as much as the new one. Trade.
But two weeks later, Reuters told Opec's Secretary General Mohammad Barkindo as saying in a letter:
"In the interests of open and transparent, and to support market sentiment and confidence, it is vital to make the production adjustments perfectly available."
Ultimately, OPEC published the list of countries that would be cutting production, Offec members Iran, Lebanon, and Venezuela, which have granted exemptions to the cats that began on January 1. Related: US. Oil outlook Slammed by lower prices
According to OPEC's list, OPEC and non-OPEC will preserve 1,195 million BPD of the market and keep their combined production at 43,874 million BPD between January and June. The main reason for this is that the partners will reduce their respective production by October 2018, except for Kuwait, Azerbaijan and Kazakhstan, whose months are September 2018, September 2018 and November 2018, respectively.
OPEC is a total of 812,000 BPD cutting to a standard of 25,937,000,000 BPD, but non-OPEC partners will be reducing production by a combined 383,000 BPD to 17,937 million BPD. OPEC's facto leaders and biggest producer Saudi Arabia will cut 322,000 bpd from its October 10,633,000bpd base and stop production at 10,311 million bpd. Russia will be taking the Lion's share of the non-OPEC cuts and will reduce production by 230,000 BPD from 11.421 million BPD on October 11, 191 million BPD.
The release of the OPEC list of quotas was a brief statement by the Joint Ministerial Monitoring Committee (JMMC), which called all participating producers "to regret their efforts in the full and timely implementation of the deliveries adjustments to ensure that the oil market Remain in balance in 2019. "
OPEC also confirmed that a JMMC meeting will be taking place in Baku, Azerbaijan on March 18, 2019.
By Tsvetana Paraskova for Oilprice.com
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