The participants in the transaction OPEC+, the largest of which Russia and Saudi Arabia, cut oil production to 9.7 million barrels per day. In the framework of the major agreements on production cuts in the country’s history are planning to cut production for two years until April 2022.

However, in conditions of excess supply in the market the key question remains: oil storage tanks that may be filled in the coming months. In addition, OPEC lowered its forecast for world oil demand for 2020 now instead of the slight increase in the cartel expects the largest in the history of the fall. But about all under the order.

Details of the transaction OPEC+

An agreement to reduce the level of global oil production OPEC+ announced April 10. The agreement was reached a month after the termination of the previous deal. The termination of the previous agreement provoked a record drop in prices for “black gold”. By 9 March the price of Brent crude oil has fallen by 30% to 33 dollars per barrel. On 30 March the price of Brent crude fell below USD 23 per barrel.

On top of that Saudi Arabia, which has accused Russia of failure of the transaction, decided to increase production from 9 million to 12 million barrels per day, thereby joining the price war. In addition, Riyadh has pushed Russian oil Urals on the European market, offering triple the supply of Arab Light grade with big discounts. This led to the fact that, as of 31 March, the price of Russian oil dropped to $ 13 per barrel.