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Kuwait agreed to freeze oil production

Кувейт согласился заморозить добычу нефти

Another member of the Organization of countries-exporters of oil (OPEC) — Kuwait, agreed to freeze production at the current level. On this February 16 Rambler News Service reports, citing data from Bloomberg.

Per day the country produces about three million barrels of oil. The source of the Agency noted that the agreement will be valid for at least three months. To explore the possibility of reducing production to oil reserves has decreased, he said.

Earlier, on February 16, Russia and several OPEC members (Saudi Arabia, Qatar, and Venezuela) agreed to freeze oil production. During the day the intention to join the agreement also said Iraq.

Thus, five of the 13 members of the cartel decided to freeze production. Against this measure were made by Iran (part of OPEC) and Azerbaijan.

The agreement between oil-producing countries intended to stop the decline of prices for hydrocarbons. However, immediately after the announcement of the results of the negotiations between Russia and the cartel, a barrel of Brent fell from 33,73 35,50 to the dollar. As of 18:40 Moscow time, North sea oil is 32,82 per barrel.

Within six years oil prices fell under pressure from a range of factors. One of them is the increase in production by OPEC members. As a result of overproduction on the market appeared oversupply of 1.5-2 million barrels per day.

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