Kazakhstan will reduce oil production by 390 thousand barrels per day

The country assumed such obligations for a period of two months under OPEC+ agreement, the press service of the Ministry of energy of Kazakhstan reports.

On April 12, during OPEC+ participation countries Ministerial webinar, a consensus was reached on an agreement to collectively reduce oil production by OPEC+ countries, as well as non - OPEC+ countries by 9.7 million barrels per day. This is by far one of the largest collective oil production cuts in the history of the global oil industry. Kazakhstan, in turn, supported the consensus in the agreement, committing to reduce production by 390 thousand barrels per day.

This decision is primarily dictated by the difficult situation that has developed not only in the oil market, but also around the world. 

Due to the coronavirus pandemic, demand for oil has fallen sharply in all countries, so the OPEC Secretariat's proposal for a collective production cut looks reasonable and timely.

Thanks to OPEC+ deal, the reduction of production will be collective, controlled and will give a positive impetus to the market, which, according to experts, will favorably affect the growth of oil prices, as well as solve the problem of overstocking.

The Ministry of energy is currently developing a scenario for reducing oil production.

Unofficial translation