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Saudi Arabia And Russia Agree To Extend Production Cuts – OilPrice.com

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Saudi Arabia And Russia Agree To Extend Production Cuts | OilPrice.com

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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    Saudi Arabia and Russia have reached a preliminary agreement to extend the current level of the OPEC+ production cuts by one month, provided that the laggards in compliance ensure over-compliance going forward to compensate for flouting their quotas so far, OPEC sources told Reuters on Wednesday.  

    “Any agreement on extending the cuts is conditional on countries who have not fully complied in May deepening their cuts in upcoming months to offset their overproduction,” an OPEC source told Reuters.

    According to the original agreement reached in April, OPEC+ was to cut 9.7 million bpd in combined production for two months—May and June—and then ease these to 7.7 million bpd, to stay in effect until the end of the year. Then, from January 2021, the production cuts would be further eased to 5.8 million bpd, to remain in effect until end-April 2022.

    Despite weak compliance from OPEC in May, as per a Reuters survey, the market expects that the OPEC+ coalition is motivated enough to extend the 9.7-million-bpd cuts through July or August. 

    On Monday, reports emerged that the OPEC+ group could hold its June meeting this week, earlier than the initial plans to hold the teleconference on June 9 and 10.  Related: Petrobras Oil Stockpiles Are “Paradoxically” Low

    However, an earlier meeting is being held up by the fact that the leaders of the pact, Saudi Arabia and Russia, will be seeking assurances from all non-compliant members that they will over-comply going forward to compensate for the loose compliance in May, an OPEC delegate told Argus today. According to the delegate, there will be “no free ride” for non-compliant members in the OPEC+ deal. These producers likely include Iraq and Nigeria from OPEC and Kazakhstan from non-OPEC.

    OPEC’s second-largest producer and the biggest laggard in the output cuts, Iraq, said on Tuesday that it would further reduce production and that it remains committed to the OPEC+ pact.

    Oil prices retreated following the reports of a one-month extension, after earlier on Wednesday prices had hit nearly three-month highs, with Brent Crude breaking above $40 a barrel.   

    By Tsvetana Paraskova for Oilprice.com

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      Additional warning about Vancouver’s No5 Orange following possible exposure of COVID-19 – News1130

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      VANCOUVER (NEWS 1130) – An expanded COVID-19 notification has been issued by Vancouver Coastal Health after an additional person who tested positive for the virus visited the site.

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      Fed's Bostic reportedly says U.S. recovery may be 'leveling off' – CNBC

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      Raphael Bostic, president and chief executive officer of the Federal Reserve Bank of Atlanta 

      Christopher Dilts | Bloomberg | Getty Images

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      Via Rail to lay off 1,000 employees amid coronavirus disruptions – Globalnews.ca

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      Amid ongoing travel restrictions and concerns about the novel coronavirus, Via Rail is planning 1,000 temporary layoffs, according to an internal email sent to employees on Wednesday afternoon by the railway company’s CEO Cynthia Garneau.

      The announcement comes at a time when the national passenger rail company continues to experience service disruptions across most of its regional and national routes, including cancellation of all trains between Montreal and Halifax, and Toronto and Vancouver until at least the beginning of November.

      Garneau explained in her email that members of Via Rail’s management could also be affected by layoffs.

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      Via Rail banks survival on high frequency rail project


      Via Rail banks survival on high frequency rail project

      Global News also obtained a copy of some “key messages” prepared for Via Rail management to deliver to the employees in order to give them notice of the layoffs.

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      In the suggested messages, management was advised to tell some employees that they would only be temporarily affected and receive 70 per cent of their usual salary “to ensure a rapid return to service even if there is no need for them to be called back to work immediately.”

      Garneau’s email and the internal messages both indicated that the layoffs would come into effect on July 24, following a formal notice that is required under the company’s collective agreement with its union.

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      The news comes at a time when many Canadians are wondering how long job losses and high unemployment rates due to COVID-19 will continue. It also comes amid growing concerns about increased deficits and the government’s ability to provide financial stimulus in the future.

      “Via Rail will continue to work on progressing its service resumption plan as the situation evolves with the goal of reintegrating its employees as soon as the customer demand allows it,” Garneau said in her email.

      “Until then, your managers are there for you if you have any questions or concerns. We are going to go through this difficult period, and, once passed, I am confident that we will be in a position to reacquaint ourselves with growth and opportunities.”

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      Global News contacted Via Rail for comment. A spokesperson replied with a statement that confirmed the layoffs along with a summary of the company’s reasons for taking this action.

      Via Rail is owned by Canadian taxpayers but operates at arms length from the federal government.

      The office of Transport Minister Marc Garneau said in an email that the government would “continue to work with Via Rail to find solutions and support workers and their families in these unprecedented times.”

      © 2020 Global News, a division of Corus Entertainment Inc.

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