Future of OPEC+ deal to become clear in April, says Lukoil CEO
The future of OPEC+ deal will become clear in April after the situation with sanctions against Iran is clarified, Lukoil President Vagit Alekperov told TASS on the sidelines of the Russian Investment Forum in Sochi.
“Everything will depend on how the situation around Iran develops in April. How much the sanctions will be strengthened,” he said.
OPEC and other oil-producing countries that are not part of the cartel agreed in December last year to cut production by 1.2 mln barrels per day against the level of October 2018.
According to this decision, 11 OPEC countries participating in the agreement should reduce production by 812,000 barrels per day – to 25.94 mln barrels. In January, according to the report, these countries reduced production by only 698,000 barrels per day – to 26.05 mln barrels. Thus, the level of execution of the deal by the OPEC countries in January was 86%. Venezuela, Libya and Iran are exempt from production cuts.
Iran, which is under US sanctions aimed at reducing its oil exports to zero, almost did not lose production in January. According to OPEC secondary sources, its production fell by only 4,000 barrels per day – to 2.75 mln barrels.
Production also decreased in Venezuela – by 59,000 barrels per day to 1.1 mln barrels, and in Libya – by 52,000 barrels per day to 895,000 barrels.