The Ministry of petroleum and energy in Olfato: Nerijus Adomaitis / Reuters
Norway was another country that decided to save oil prices in the face of declining demand due to coronavirus and the rapid filling of tanks world of cheap raw materials. Oslo announced a reduction in the extraction of raw materials from the summer of 2020. This is stated in the message of the Norwegian government.
The Kingdom is the largest producer of raw materials for Western Europe and has been producing giant field Johan Sverdrup (Johan Sverdrup) in the North sea. Total daily oil production in the country is about 1.86 million barrels. In June of Oslo is planning to cut oil production to 250 thousand barrels per day. In the second half of 2020, the reduction will amount to 134 thousand barrels per day.
In addition, the Norwegian authorities will postpone the start of production on several fields until 2021. In the aggregate, by the end of December 2020 oil production in the Kingdom will be 300 million barrels lower than originally planned by local companies.
In April, the oil producing countries within OPEC+ renewed agreement to reduce the extraction of raw materials and agreed to withdraw from the market of 9.7 million barrels per day. The agreement will take effect from 1 may. Norway is not among the States that signed the deal, but previously stated that it will consider unilateral reductions to support the efforts of world governments to stabilize the situation on the market.
In 2020 against the background of the pandemic coronavirus oil is rapidly getting cheaper. In early April the Russian export of raw materials Urals fell below $ 10 per barrel. The last time price was at this level in early 1999. Later at least since the end of last century renewed and the oil benchmark Brent crude dropped below $ 16. WTI in April and is left in a minus. On the last day of trading in may futures the cost of raw materials for the first time in history fell to minus $ 40.
Video, photo All from Russia.