OPEC cuts production to 500,000 barrels per day
On December 6, 2019, the Organization of Petroleum Exporting Countries reached a deal deepening their output cuts. They have set the target as 500,000 barrels a day. The action is being implemented in order to eliminate surplus and bolster crude prices
In 2019, the organization had agreed to reduce production by about 1.2 million barrels per day. Saudi Arabia in 2019 pumped well below its quota of 10.3 million barrels per day. Other members of the organization Azerbaijan, Mexico and Angola were unable to sustain their production quota due to natural declines. Russia had achieved its target in 3 months. Nigeria and Iraq increased their output.
The above data was published by the International Energy Agency.
Saudi Arabia plays the major role in the OPEC decisions. OPEC oil production dipped to an eight-year low after attacks on Saudi oil plants. Following the attacks, Iraq emerged as the major producer of the organization.
India imports 80% of its petroleum needs from OPEC countries. However, India has been reducing its dependence on the OPEC countries. In October 2019, India imported 4.56 million barrels per day from OPEC. This is 3.3% low as compared to the previous year.
Category: Economy & Banking Current Affairs