The terms of the OPEC+ deal to cut the output by 9.7 million barrels in May-June will be fulfilled from May 1, Report informs, citing TASS.
According to sources, Saudi Arabia, UAE, and other big oil producers see no need for discussion about moving the output cut to an earlier time in order to tranquilize the tension in the market.
One of the sources said: ‘We think that decline in WTI crude price appeared as a result of the coincidence of certain technical and speculation factors. Once the reduction in the output shows its impact, the market will regulate itself.’
Other source says that as all supply agreements for April have already been signed, it will be impossible to reduce output before May.
Iraqi oil minister Thamir Abbas Ghadhban had earlier proposed to move the output cut to an earlier time. Along with Iraq, with the initiative of other countries, virtual discussions were held at OPEC on April 21. The countries such as Saudi Arabia, UAE, Kuwait did not participate in these discussions. Moreover, the meeting of the Monitoring Committee set for May has not become definite either.
As a result of the deal reached on April 12 to cut the output, there first was growth in the market. Brent crude rose to $36. However, it did not last long. Brent crude price was $17 on April 22. WTI crude fell to -$40 for the first time. Such a situation is caused by the filling of Cushing storehouses in Oklahoma State. This morning, the WTI crude was sold at $10 a barrel. According to experts, plenty of oil can cause the Brent crude price to drop, but not below zero.