During the meeting on Tuesday, Commission Chairman Wayne Christian and another member of the board, Christie Craddick, voted against a reduction in oil production. Oil Regulator Commissioner Ryan Sitton voted in favor, TASS reported.
“The proposal [to limit oil production] is rejected by two votes in favor and one vote against,” Christian said.
According to the head of the commission, during the meetings lasting 10 and a half hours, the views of “thousands and thousands of people” were heard.
- I believe that, having examined the proposal so carefully, we have more than exhaustively satisfied the request of the companies. Secondly, I can assure you that we spent the last weeks urging other states to join us and discuss the request together to find out how it is possible to satisfy it, ”Christian said, acknowledging the failure of the attempts made.
He noted that the outcome of the vote “aims to restore confidence to market participants,” confirm “the firmness of the commission’s position” on the issue under review, and “leave the problem behind in the near future.”
Note that Sitton voted in favor of a proposal to reduce oil production by 20%. In his Twitetr, he wrote that the work of the commission was hindered by politics. In his opinion, the world will have to reduce production of “black gold” by 30 million barrels, if now it is not reduced by 20 million.
Recall that the new transaction OPEC + began to operate in May. According to the agreements on it, participants must reduce the daily volume of oil produced by 9.7 million barrels in May-June, by 7.7 million barrels in the second half of this year, and then by the end of April 2022 - by 5.8 million barrels. Russia had to cut production the most - eight times the previously estimated volume by 23%. This is the minimum since 2002.
As for Texas WTI, we recall that on April 20, this grade was trading at a price below zero.