OPEC and non-OPEC members initially agree on terms of oil cut deal
Saudi Arabia reportedly agreed to reduce its oil production by 486,000 b/d from its October levels. Among OPEC and non-OPEC members, Saudi Arabia committed to make the largest cut in production.
Iraq, despite its insistence on being exempt from an OPEC deal due to the ongoing wars in the country, agreed to cut production by 209,000 barrel/day from its October levels, the Oil Minister said.
Russia, as a non-OPEC member, agreed to reduce its oil production by 300,000 barrels/day as of January 1, but it is not yet known from which level the cut will be made.
However, Iran will reportedly be allowed to produce 3.797 million barrels/day. This indicates an increase from its October levels, which was 3.69 million barrels/day, but is still below the pre-sanctions level of 4 million barrels/day.
Indonesia reportedly suspended its OPEC membership since it cannot agree to cut its production due to budget constraints. Its share from the cut will be distributed among 13 OPEC member countries.
Libya and Nigeria are exempt from the deal due to the domestic conflicts that have been going on in these countries over this year.
The deal will be valid as of January 1 for six months.
OPEC’s next official meeting will be held on May 25.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Bleak outlook for Q1 keeps European PP, PE buyers sidelined
- PLAST EURASIA 2022: Eyes on Russian and US supplies with demand woes in focus
- December PE offers to SE Asia imply further drops, yet to respond to China
- Has the bear market for Asian PVC almost run its course?
- Demand outlook for crude oil dims amid China worries
- Asian styrene prices rebound from almost two-year lows
- Turkey’s PE market on brink of new drops for December
- Signs of optimism in China PP and PE markets, but caution remains
- Egypt’s import PP, PE markets flat but domestic prices turn upwards in Nov
- PVC downturn enters 7th month, prices still far from pre-pandemic levels in Europe