Norway's oil ministry says the country will cut oil output
- to cut output by 250,000 barrels of oil equivalent per day in June, 134,000 bpd in H2 2020
- start-up of production of several fields will be delayed until 2021
- consequently, total Norwegian production in December 2020 will be 300,000 barrels less per day than originally planned by the companies
- regulation will cease by the end of the year
- basis for the regulation is a reference production of 1,859,000 barrels of oil per day
- thus, a cut of 250,000 barrels per day in June 2020 gives an upper limit for oil production on the Norwegian continental shelf of 1,609,000 barrels per day in june
- in the second half of 2020 upper limit for oil production on the Norwegian continental shelf will be 1,725,000 barrels per day
- ministry says gas fields are exempt
- cut will not affect Norwegian gas production or Norwegian gas exports
- ministry says throughout the second half of 2020, oil demand is expected to grow gradually as economic activity is resumed
Headlines via Reuters
Note that Norway's cut to output does come from a high base. And also, the cut is for June, while OPEC+ is cutting a month earlier, in May.
The news giving the oil price a lift. Demand destruction is still a huge issue for oil - Norway expect it improve but 'gradual' is the probably the right word yes.