BAKU, Azerbaijan, Nov.9
By Nargiz Sadikhova - Trend:
Kazakhstan was extracting 1.4 million barrels of oil a day excluding gas condensate in Oct. 2020 which means that the country’s liabilities within OPEC+ agreement were implemented for 99 percent this month, Trend reports citing Kazakhstan’s Ministry of Energy.
The ministry said that the 2020 plan for oil production in Kazakhstan was reduced from 90 to 85 million tons, which, in turn, led to a decrease in the volume of oil producing and work load for oil service companies. The government of Kazakhstan, in turn, has taken a number of administrative and tax measures aimed at supporting these companies.
On the morning of March 9, 2020, Brent crude plunged 25 percent dropping to its lowest since February 2016 and recording the biggest one-day percentage declines since Jan. 17, 1991.
Trading volumes in the front-month hit record highs in the previous session after a three-year pact between Saudi Arabia and Russia and other major oil producers to limit supply fell apart on March 6, 2020.
The extraordinary meeting of OPEC+ ministers was held on Apr. 12, 2020, following which the agreement to reduce oil production by 9.7 million barrels a day was signed for the period of two months starting from May 1, 2020.
Kazakhstan, in its turn, has supported the consensus in the agreement having taken the liability to decrease oil production by 390,000 barrels a day. In Jun. 2020 the agreement was extended on the same conditions.
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