Kazakhstan complies with the terms of the OPEC+ agreement

This was announced today, May 18 at a briefing in the Central communications service by Vice-Minister of Energy Aset Magauov, the press service of the Ministry of Energy of the Republic of Kazakhstan reports.

According to Magauov in order to restore stability in the world oil market and oil prices, the OPEC+ member countries agreed to reduce production.

In May-June 2020, the countries will reduce their total production by 9.7 million barrels per day or by 23% relative to the initial level, then in July-December 2020 this restriction will be relaxed up to 7.7 million barrels per day or 18 %, and in the period from January 2021 to April 2022 the level of restrictions will be 5.8 million barrels per day or 14 % of the base level, - said Magauov. - The volume of Kazakhstan's obligations in this agreement is 390 thousand barrels per day. The Government of the Republic has made a corresponding decision to reduce production.

As Magauov noted, the OPEC+ agreement is necessary to exclude overstocking of oil storage facilities, because OPEC has worsened the forecast of a decline in global oil demand due to the coronavirus pandemic: in the second quarter of 2020 the demand is expected to fall up to 81.3 million barrels per day.

All market players were sympathetic to the need to reduce oil production, because this measure will give a positive impetus to oil industry development - summed up Magauov.

Unofficial translation