Saudi officials said that Saudi Aramco began to cut oil production this week. The related output decreased from the current level of 6.5438+0.2 million barrels per day, and finally reached the level of 8.5 million barrels per day stipulated in the previous agreement. Officials said that Saudi Aramco will reach the target level as early as May 1 day.
According to market analysis, Saudi Arabia cut production ahead of schedule mainly because it takes time to adjust oil production.
Kuwait, Algeria and Nigeria, other members of the Organization of Petroleum Exporting Countries, also joined Saudi Arabia's early production cuts.
Kuwait News Agency quoted Kuwait Oil Minister Khaledal-Fadhel as saying on 23rd that Kuwait had decided to cut crude oil supply before May 1 day stipulated in the production reduction agreement.
Earlier, OPEC+oil producers headed by Saudi Arabia and Russia finally reached a joint production reduction agreement. According to the agreement, this production reduction is in a decreasing way, which is divided into three stages: from May 1, the production will be reduced by 9.7 million barrels per day for two consecutive months; From July 1 to February 1, the output was reduced by 7.7 million barrels per day; 202 1 to 1 to reduce production by 5.8 million barrels per day in April 2022. The adjusted benchmark is the output of 20 18 and 10. The agreement is valid until April 30, 2022, but will be re-approved in February 2002165438. .
According to the agreement, Saudi Arabia and Russia will each reduce production to about 8.5 million barrels per day, and all other members agree to reduce production by 23%.
Market analysis believes that the sharp drop in oil prices this week may eventually prompt the Saudi government to act ahead of schedule and start to cut production.
International crude oil futures fell sharply on Monday, and the US-month contract suffered a Black Monday. In May, WTI crude oil futures continuously broke through nine integer psychological barriers from 10 to 1 0, and fell to a negative value less than half an hour before closing, with an intraday decline of more than 100%. It once fell to -40 USD/barrel before closing, and finally closed at -37.63 USD/barrel, down 55.90 from last Friday's closing.
These figures mean that traders will soon have insufficient space to store crude oil. For traders, if the long contract in May is uneven, it means that they will receive spot oil and only have a few days to tell the seller how to receive it. But at this time, it is impossible to go to Cushing to find oil storage space. May contract has become a hot potato for traders with pure virtual trading.
Under the impact of bad oil prices, American oil and gas producers are also discussing reducing production. Texas crude oil regulators on Tuesday considered taking enforcement action to get producers to cut crude oil production. This will be the first time that the Texas government has taken this compulsory measure since 1972. Some officials expressed support for reducing production by 20%, but relevant specific measures are still under discussion.