​Kazakhstan to follow up on its responsibilities within August OPEC+ oil cuts

BAKU, Azerbaijan, Jul. 16 By Nargiz Sadikhova – Trend: ​Kazakhstan will carry out its responsibilities within August OPEC+ oil extraction cuts, Trend reports with reference to Kazakhstan’s Ministry of Energy. The overall OPEC+ oil output decrease in August will amount to 7.7 million barrels a day starting Aug. till the end of 2020. The agreements were made during a 20th Meeting of the Joint Ministerial Monitoring Committee (JMMC), which took place on July 15, 2020. The Committee reviewed the crude oil production data for the month of June 2020 and welcomed the significant performance in the overall conformity level for participating OPEC and non-OPEC Countries, an achievement that found wide recognition in the market. The ministry said that Kazakhstan, in turn, is ready to fulfill its obligations. Earlier Kazakhstan representative told OPEC+ secretariat that an overproduction of oil production was observed in Kazakhstan over the first 12 days of May due to the inertia of the industry. 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. --- Follow the author on twitter: @nargiz_sadikh