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US not concerned by any new OPEC output cut, Brouillette says

February 13/2020

MOSCOW (MRC) -- The United States is not concerned by the prospect of further output cuts by OPEC and its allied oil producers, reported Reuters with reference to US Energy Secretary Dan Brouillette's statement.

A technical panel that advises the Organization of the Petroleum Exporting Countries and its allies, led by Russia, have proposed an additional output cut of 600,000 barrels per day (bpd), three sources told Reuters last week.

The group of producers, known as OPEC+, has already been implementing cuts of 1.2 million bpd since January 2019 to reduce the global supply glut and prop up crude prices. OPEC is meeting next month in Vienna.

"Were not concerned about the decision that OPEC may make, and whatever decision they make will be good for them and we appreciate what theyre doing," Brouillette told reporters on the sidelines of a conference at the U.N. nuclear watchdogs headquarters in Vienna.

"Theyre going to meet and theyre going to make a determination and a decision thats best suited for them, but I think their ability to impact oil prices in the manner in which they did, you know, three, four, five decades ago is just fundamentally different," Brouillette said.

He also said that while liquefied natural gas (LNG) prices are the lowest theyve been in years, "the future is still bright for LNG".

Global LNG prices have plunged to fresh record lows as the outbreak of coronavirus has cut demand for gas in China amid a glut in supply.

Prices have been collapsing for months on mild winter weather in Europe and Asia, record gas stockpiles in Europe and lower economic growth due to the US-China trade war.

US gas producers are counting on LNG exports growing spectacularly in the coming years to absorb record amounts of gas associated with oil output from shale formations like the Permian Basin in West Texas and North Dakotas Bakken field.

"Theres a tremendous amount of demand for LNG around the world. Conversations with China have gone well... and I fully expect that in the course of the next few months youll see additional agreements not only in China but in Europe," Brouillette said.
Author:Margaret Volkova
Tags:crude and gaz condensate, USA.
Category:General News
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