Major oil producing countries propose to extend compensation and reduce production |
[ Time:2020-09-21 | Hits:420 ] |
| The Joint Ministerial supervisory committee of the organization of Petroleum Exporting Countries (OPEC) and non OPEC oil producing countries held a regular meeting on the 17th, announcing that it would recommend to the ministerial meeting of OPEC and non OPEC oil producing countries that the compensation and production reduction mechanism, which will expire in September, be extended to the end of December this year, so that a number of oil producing countries whose production exceeds the quota can fully fulfill their production reduction obligations. Boosted by the news, international oil prices rose significantly on the 17th. Light crude for October delivery rose $0.81, or 2.02%, to $40.97 a barrel on the New York Mercantile Exchange. London Brent crude for November delivery rose $1.08, or 2.56%, to $43.3 a barrel. Bjornal tohyugan, senior vice president and head of oil market at leista energy, said that market participants believed that OPEC and non OPEC oil producing countries would "step in to rescue the market" when oil prices were low, which boosted the trend of international oil prices. Phil Flynn, senior market analyst at the US price futures group, said that major oil producing countries were also open to extending the compensation cut to 2021, further supporting international oil prices. In addition, bad weather and hedge fund short covering also contributed to the rise of oil prices to a certain extent. The so-called compensatory production reduction refers to the fact that in order to ensure the full implementation of the production reduction agreement between OPEC and non OPEC oil producing countries, the oil producing countries that have previously "failed to meet the production reduction standards" need to reduce their output to make up for the lack of production reduction. |