Saudi Aramco started reducing oil production last week, without waiting for an agreed date for OPEC + to begin cutting production. Bloomberg reports this regarding a representative of the Saudi oil industry familiar with the situation.
Earlier this month, OPEC+ members agreed to cut production from May 1 to support the oil market, which has experienced a collapse in prices in the context of the coronavirus pandemic. Together, 23 countries should reduce production by 9.7 million barrels per day.
Aramco has started reducing production from about 12 million barrels per day to reach the agreed level of 8.5 million barrels per day, told Bloomberg. According to the source, Aramco may reach the target production level a little earlier than May 1.
Earlier, Kuwait, Algeria, and Nigeria signaled their intention to start cutting production ahead of schedule.
The international energy Agency forecasts that global oil demand will fall in April by 29 million barrels per day to the lowest level in the past 25 years.
In 2020, oil demand will fall by a record 9.3 million barrels per day, the IEA expects.