Vienna Agreement Opec

Helima Croft, head of commodities at RBC, told US broadcaster CNBC last week: “It looks like it`s planned for it to reverse this agreement, maybe start by June 2020.” She added that the meeting would be an opportunity for Saudi Arabia to “put its head down to crazy producers and say, “Get your act together.” OPEC ministers will meet in Vienna on December 5 and then meet with non-OPEC members on December 6 to decide what to do with the current production-limitation agreement, which expires in March, the Sylva ministry said in a statement. His statements brought OPEC`s two largest producers closer together, Iraq and Saudi Arabia. However, Saudi Arabia has yet to react publicly to Iraq`s progress and the proximity consensus has arrived late, with analysts previously convinced that the group would only accept an extension of the current agreement. The agreement is massive and represents the largest drop in production in OPEC history. The reduction is more than twice as large as the 4.2 million barrels per day that the oil cartel made through a series of budget cuts during the 2008 financial crisis. However, analysts say this is likely to be overshadowed by the magnitude of the loss of demand in the grip of the pandemic. In 1971, an agreement was signed between major oil companies and OPEC members operating in the Mediterranean basin, the so-called Tripoli Agreement. The agreement signed on 2 April 1971 increased oil prices and increased the share of profits of producing countries. [22] On Sunday, Saudi Arabia and Russia agreed with other oil-producing nations to cut production by 9.7 million barrels per day for the next two months in order to stem a drop in oil prices caused by the coronavirus pandemic and disputes between Moscow and Riyadh.

Russia not only wants to meet the demands of OPEC insiders, but also impose its own change: OPEC`s accounting rules on how gas contributes to oil quotas, a step that could allow Russia to effectively increase its oil production under the current agreement. Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said OPEC could not say it had an agreement until it met with non-OPEC producers on Friday. LAGOS (Reuters) – Nigeria has an obligation to fully implement agreements between OPEC members and non-OPEC countries, its state oil minister said on Sunday ahead of an OPEC meeting in Vienna.