Norway Is Preparing to Increase the Excess of Oil in the Market
OREANDA-NEWS. Bloomberg agency reports, citing sources, that Norway is preparing to deliver a powerful blow to the international oil market by launching increased supply of fuel from the new field Johan Sverdrup located in the North Sea.
Norwegian company Equinor began production of oil at Johan Sverdrup in November 2019. By December 2019, production reached 350 thousand barrels per day. It was expected that in the summer of 2020 the field will bring 440 thousand barrels per day, and 660 thousand barrels after 2022. Now it became known that in early May, production at the field will amount to 470 thousand barrels per day, 30 thousand barrels more than planned before.Such an increase in supply will further worsen the situation in the global oil market. Amid the coronavirus pandemic and the oil crisis, consumption fell by 25 %. Thus, the market has already formed an excess of 25 million barrels per day. However, the owners of Johan Sverdrup intend to increase production. According to experts, it can be profitable even when a barrel of oil costs less than 20 US dollars.