Norway strikes a powerful blow to the world oil market

Norway is preparing to deal a powerful blow to the international oil market by starting the supply of black gold in increased volumes from the new Johan Sverdrup field in the North Sea. This is reported by Bloomberg with reference to sources. It is reported that the Norwegian company Equinor began production of raw materials at Johan Sverdrup field in November 2019. By December 2019, production at the field had reached 350,000 barrels per day. The field was expected to bring in 440,000 barrels per day in the summer of 2020, and 660,000 barrels after 2022. But today it became known that at the beginning of May production at the field will amount to 470,000 barrels per day, that is, 30,000 barrels more than planned. Such an increase in supply will further worsen the situation in the world oil market. The fact is that usually world consumption of raw materials holds at the level of 100 million barrels per day. But amid a pandemic of coronavirus infection and the oil crisis, oil consumption has fallen by 25%. Thus, the market has already formed an excess supply of 25 million barrels per day. But the owners of the field Johan Sverdrup, apparently, intend only to increase production. They are played by the low cost of oil production at this field. Experts estimate that it can generate income even when a barrel of oil costs less than $20.