The US Reduces Oil Production By 200,000 Barrels A Day Before The OPEC+ Deal
Daily oil production in the United States for the period from April 25 to may 1 decreased by another 200 thousand barrels, to 11.9 million barrels, according to the materials of the Energy Information Administration (EIA) of the US Department of energy. This happened on the eve of the OPEC+ deal to reduce production starting on May 1.
Since mid-March, production in the United States has fallen by 1.2 million barrels per day. In percentage terms, the drop in fuel production amounts to about 9.2%.
Since the beginning of February, oil production in the United States has remained at the level of 13 million barrels per day or higher. However, at the end of March, it began to decline, and in the period from March 28 to April 3, the US recorded the strongest drop in oil production since July 19, 2019 - then it collapsed by 600 thousand barrels per day for a week.
Earlier, the EIA lowered its forecast for 2020 for oil production in the United States by 9.5% - to 11.76 million barrels per day. At the same time, in 2021, production will decrease by another 700 thousand barrels - up to 11.03 million barrels per day, the Agency expects.
OPEC+ countries were able to agree on reducing oil production at an emergency video conference on April 12. It provides for a total reduction in oil production in may-June by 9.7 million barrels per day, in July-December-by 7.7 million barrels per day, in January 2021 - April 2022-by 5.8 million barrels per day.
In particular, Russia and Saudi Arabia will reduce daily production by 2.5 million barrels each from the level of 11 million barrels. All other participants will reduce production from the level of October 2018.
Also, the US can reduce production by 2-3 million barrels per day, Russian energy Minister Alexander Novak told.