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OPEC deal extended, 9.6 million bpd production cut until late July

Published on : Saturday, 06 June 2020 19:32   Read : 0 time(s)
OPEC deal extended, 9.6 million bpd production cut until late July

ALGIERS-The 11th OPEC and Non-OPEC ministerial meeting bringing together the signatories of the Cooperation Statement, held Saturday by videoconference under the co-chairmanship of Saudi Arabia and Russia, decide to extend the 9.6 million barrels per day (bpd) production cut agreement to 31st July 2020, announced Energy Minister and Chairman of the Conference of the Organization of Petroleum Exporting Countries (OPEC) Mohamed Arkab.

The announcement was made to the press by Minister of Energy and President of the OPEC Conference, Mohamed Arkab, at the end of the meeting, which was preceded by the 179th meeting of the OPEC Conference, also held by videoconference.

"We are very pleased and satisfied with the two OPEC and OPEC+ meetings held today. We agreed to continue cooperation and to abide by the reduction agreement signed on April 12. After examining reports on the market situation, we decided together to extend for a period of one month the agreement to reduce production in May and June by 9.6 million barrels per day (bpd) until the end of July," the Energy Minister said.

According to Arkab, this reductions aims to absorb the additional quantities of oil supply still available on the market, estimated by OPEC at nearly 10 million barrels per day.

The OPEC + countries also agreed to hold three monthly ministerial meetings by video-conference to monitor market developments and the rate of implementation of the reduction agreement by all the signatory countries, announced the same official.

See also: OPEC countries should not content with results achieved so far

"The implementation of this agreement is very important during this three-month period,” he continued.

Arkab stressed that the decisions taken at the 11th OPEC+ Conference took account of reports of a resumption of several economic activities that will also help to absorb the additional quantities on the market.

"This is a very positive meeting, during which all countries welcomed this agreement. This is the goal sought because a voluntary reduction requires total adhesion", said the minister.

Calling "historical" the agreement reached at the 11th OPEC+ conference, Arkab said that it aimed at "stabilizing available supply and demand.”

"This balance is necessary and indispensable for the oil sector. Prices will certainly be impacted by this agreement", affirmed the same official.

Last modified on Sunday, 07 June 2020 18:31
OPEC deal extended, 9.6 million bpd production cut until late July

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