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OPEC+ countries discuss maintaining May quota to cut output until end of 2020

According to the April agreements, OPEC+ countries reduce production by 9.7 mln bpd only in May-June, and use the reduced quota of 7.7 mln bpd from July to the end of December

© Yegor Aleyev/TASS

MOSCOW, May 27. /TASS/. OPEC+ countries are discussing preserving the maximum quota for reducing oil production — 9.7 mln bpd — until the end of 2020, a source participating in the negotiations told TASS.

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OPEC+ deal helps avoid negative developments in energy markets — Kremlin

"Until the end of 2020 it is very likely,"the source said. Two other sources confirmed that OPEC "seriously" wants to maintain the current quota after June.

According to the April agreements, OPEC+ countries reduce production by 9.7 mln bpd only in May-June, and use the reduced quota of 7.7 mln bpd from July to the end of December. The agreement remains in effect until the end of April 2022.

The position of Russia, the largest oil producer in the OPEC+, on this issue is still unknown. According to TASS sources, on Tuesday, Russian Minister of Energy Alexander Novak discussed this issue at a meeting with oil companies, but there was no common stance among Russian producers. Meanwhile, presidential spokesman, Dmitry Peskov told reporters that the deal was effective, because thanks to it, a nosedive scenario was avoided.

The OPEC+ agreement entered into force on May 1. It implies a 9.7 mln bpd reduction of oil output from May to June. Russia and Saudi Arabia, according to the agreement, will cut oil production by equal shares — 2.5 mln bpd from the base level of 11 mln bpd.

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