BAKU (Pakistan Point News / Sputnik - 10th April, 2020) OPEC+ has adopted a declaration of cooperation that envisages a three-stage reduction of oil production compared to the level of October 2018, but only in case of Mexico's participation in the deal, the Azerbaijani Energy Ministry told Sputnik on Friday.
On Thursday-early Friday, OPEC+ held talks on a new oil output cut deal, which failed to result in an adopted agreement because of Mexico's decision to withdraw from the talks.
"During the ninth meeting of the ministers of the Organization of the Petroleum Exporting Countries in a format of a video conference, the new Declaration of Cooperation was adopted after some 11-hour discussions on condition that Mexico will accept the proposed cuts. It should be noted that the new Declaration of Cooperation envisages the three-stage reduction of the daily oil production compared to the level of October 2018," the ministry said.
If the deal is approved, the OPEC+ countries will decrease their daily oil output by 23 percent, or 10 million barrels compared to October 2018.
"[According to the declaration], in July-December 2020, the daily oil production will be reduced by 8 million barrels, or 18 percent compared to October 2018. According to the Declaration of Cooperation, starting from January 2021 to April 2022, OPEC+ has to cut the output by 6 million barrels per day compared to October 2018. It is expected that during this period, the production commitments of OPEC nations will amount to 3.651 million barrels [per day], while those of the non-OPEC countries to 2.349 million barrels," the ministry added.
