Setback to OPEC
In an unexpected move, Angola has decided to part ways with the Organisation of Petroleum Exporting Countries (OPEC), sending ripples through the intricate web of global oil alliances.
Saudi Arabia, the world’s largest oil exporters on Friday informed some Asia-based refiners that it will supply 8.5 million barrels per day (bpd) of crude starting from May under a producers’ agreement to restrict supply and boost plummeting prices.
The deal and its announcement came after Russia and Saudi Arabia ended their oil price war to control the plunging oil prices. During the oil war, the kingdom boosted supplies to records of over 18 million bpd earlier this month.
In a brief statement on the website of the Saudi bourse, the firm said Friday it would make available 8.5 million bpd, without clarifying whether or how this would be split between exports and domestic supply.
Advertisement
Global oil prices have collapsed amid economic turmoil due to the novel coronavirus pandemic, along with a supply glut and the Saudi-Russian price war.
But the OPEC+ alliance of major producers, led by Riyadh and Moscow, agreed Sunday to slash daily production by 9.7 million bpd over the next two months.
Advertisement
