‘This is good:’ Natural resources minister welcomes oil nations’ deal to cut production

By Staff

Posted April 12, 2020 6:49 pm

Updated April 12, 2020 7:37 pm

OTTAWA  — Canada on Sunday formally welcomed a deal by OPEC and allies to cut oil output by a record amount, saying Ottawa was committed to achieving price certainty and economic stability.

READ MORE: OPEC, oil nations agree to record-setting oil production cut amid coronavirus pandemic

“This is good. We welcome any news that brings stability to global oil markets,” Natural Resources Minister Seamus O’Regan said in a statement emailed to Reuters. The group, known as OPEC+, said it had agreed to reduce output by 9.7 million barrels per day (bpd) for May-June.

Oil and gas sector pens open letter to Canadians asking for financial help
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“The federal government is deeply concerned about oil price instability … Canada is committed to achieving price certainty and economic stability,” O’Regan said.

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READ MORE: Canada, G20 agree on need for stable oil price; mum on calls to cut output

Canada is the world’s fourth-largest oil producer, extracting some 4.9 million barrels per day in February.

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A Canadian government source said O’Regan had not formally agreed to a curtailment policy since that was the responsibility of the country’s energy-producing provinces.

The source requested anonymity given the sensitivity of the situation.

© 2020 Reuters