Norway to Keep Oil Production Cut Unchanged after OPEC+ Deal

Nerijus Adomaitis
Monday, June 8, 2020

Norway, Western Europe's largest oil producer, has no plans to modify its existing plans for production cuts, following the OPEC+ group's agreement to extend a deal on record output cuts to the end of July, the oil ministry said on Monday.

On Saturday, OPEC+ agreed to extend the deal to withdraw almost 10% of global supplies from the market by a third month to end-July, sending Brent crude price to over $43 a barrel.

"OPEC+ has played a key role in the ongoing stabilization of the oil market. Their last decision underscores their efforts in these unprecedented times for the world economy. There is no plan to change the Norwegian regulation," the ministry said in an email to Reuters.

Norway is cutting output by 250,000 barrels per day (bpd) in June and by 134,000 bpd in the second half of the year.

The country's oil production limit was set to 1.609 million bpd in June and to 1.725 million bpd in the second half of the year, respectively.

Norway has restrained its oil output several times in the past, including from 1986 to 1990, in 1998-2000 and in the first half of 2002, always in tandem with others, when prices fell. 

(Reporting by Nerijus Adomaitis, editing by Gwladys Fouche)


Categories: Energy Offshore Energy Activity Europe Production

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