The world’s major oil producers on Saturday agreed to extend current oil production cuts until the end of July.
At the meeting, OPEC and its allies OPEC+ agreed to extend the current cuts of 9.7 million barrels per day, which came into effect in April. In the April deal, the members had agreed on a cautious lowering of the cuts to 7.7 million barrels per day from July which would run till the end of the year 2020. However, during Saturday’s meeting, the members concluded that the future pace of cuts to be reviewed on a month on month basis.
At the same time, Nigeria agreed to make deeper cuts in the coming period after failing to make oil production cuts during May and June. In a tweet, Nigeria’s ministry of oil and petroleum confirmed the country’s commitment to the existing OPEC+ arrangement and it will compensate the missed cuts in July, August and September.
Kremlin spokesman Dmitry Peskov said the agreement will have a positive effect on future stabilization of the energy markets.
Data Source; FXPesa Kenya
