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2020-05-12 14:45:00

SAUDI ARABIA, KUWAIT OIL PRODUCTION DOWN

SAUDI ARABIA, KUWAIT OIL PRODUCTION DOWN

ENERDATA - 12 May 2020 - Saudi Arabia and Kuwait have committed to further reduce their crude oil production in June 2020, on top of the reduction already agreed with the OPEC+ in April 2020. Saudi Arabia, which had to cut its output by 23% from a baseline level of 11 mb/d to nearly 8.5 mb/d in May-June 2020, will reduce its production by another 1 mb/d and should produce up to 7.5 mb/d in June 2020. Kuwait has also decided to reduce its crude oil production by another 80,000 bbl/d in June 2020. Under the April 2020 agreement Kuwait agreed to reduce its output by 646,000 bbl/d, from 2.9 mb/d to 2.25 mb/d.

Under the OPEC+ agreement of April 2020, voluntary producers agreed to cut their overall crude oil production by 9.7 mb/d over the 1 May 2020 - 30 June 2020 period, in an attempt to reduce the global oversupply and to firm up depressed oil prices. The production cuts would be calculated on the basis of the October 2018 production level, except for Saudi Arabia and Russia that have a baseline level of 11 mb/d. Production cuts would then be relaxed to 7.7 mb/d from 1 July 2020 to 31 December 2020 and to 5.8 mb/d from 1 January 2021 to 30 April 2022. The potential extension of the agreement beyond April 2022 will be reviewed in December 2021.

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Tags: SAUDI, ARABIA, KUWAIT, OIL, PRODUCTION