Countries providing 55% of world oil production (OPEC members, as well as 11 states outside the organization) agreed on Saturday at a meeting in Vienna to reduce daily oil production by a total of 1,7-1,8 million barrels per day from the first half of the year 2017.
Energy Minister Alexander Novak announced this at a press conference.
“The total reduction will be approximately 560 thousand barrels per day. This production reduction will occur at an accelerated pace during the first half of the year. OPEC countries today confirmed that, in accordance with the agreement reached between them, there will be a reduction of 1 million 200 thousand barrels per day. In total, this will result in a reduction of almost 1,7-1,8 million barrels per day,” he said.
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According to the minister, such measures will allow “balancing the market situation.”
“Today’s agreements will accelerate the stabilization of the situation in the markets and reduce volatility,” said the head of the department.
“This is not a closed agreement, other countries can join it,” Novak added.
The Saudi Energy Minister, who was present at the press conference, called the agreements reached historic. He recalled that over the past two years, oil prices and investment in the industry have fallen by 70%. However, after today’s agreement, “the phase of market stabilization will begin now.”