The oil alliance OPEC + agreed on the production level
According to the Russian news agency Tass, the oil cartel OPEC and its ten cooperation partners (OPEC +) have agreed on a largely stable production level for February and March. According to this, Russia is allowed to produce 65,000 barrels (159 liters each) per day and Kazakhstan with 10,000 barrels more, but Saudi Arabia will compensate for the increase.
With this, both Saudi Arabia, which was against an expansion of oil production, and Russia, which advocated opening the oil tap slightly, would have achieved important goals. The online ministerial meeting of the 23 states had to be extended until Tuesday due to the differences of opinion.
Many oil-exporting countries are in a difficult situation. They urgently need the income from the oil business for their national budget, but too much supply could put prices under pressure. The further course of the corona crisis with its economic consequences is important. The better the world economy runs again, the more oil is needed.
The alliance OPEC +, which supplies around 45 percent of global oil production, had only increased its production volume by 500,000 barrels again in January. Monthly consultations were agreed in order to be able to react quickly to the respective situation on the oil market.
