Norway will soon conclude that oil production should be cut: Oil and Energy Minister

Norway will soon conclude that oil production should be cut: Oil and Energy Minister


On Tuesday, Norway's oil minister reiterated that Western Europe's largest oil producer was soon to decide whether to slash its production after the OPEC+ alliance decided to historic curbs.

Oil and Energy Minister Tina Bru told journalists, “We have not yet concluded. It will happen soon.”

Brent's oil front-month contract fell Tuesday to $18.10 a barrel, its lowest since December 2001, after the United States May futures fell Monday to minus $40 a barrel because of worries about the effect of the novel coronavirus pandemic on demand for petrol. 

The Petroleum Exporting Countries Organization and its partners, including Russia, have declared sweeping production cuts, accounting for nearly 10 per cent of global supplies.

With economies practically at a standstill due to coronavirus curfews, demand has decreased by as much as 30%.

Tina Bru spoke with members of the Norwegian oil industry after conducting a video conference call jointly with Prime Minister Erna Solberg. 

Solberg said the government is looking at potential measures to help the oil sector, Norway's largest industry, reeling from the twin shocks of low crude prices and the pandemic COVID-19. 

"We will come back to it before the revised budget," Bru said, due in May. She has not provided details about what interventions could be considered.


Photo: Tina Bru, Norway's Oil and Energy Minister/ NTB/SCANPIX