The Organisation of Petroleum Exporting Countries (OPEC) and its oil allies, which is led by Russia, have agreed to extend their record output cuts by one month.
OPEC and its allies, a group called OPEC+, decided in April to cut output by a record 9.7 million barrels per day to lift prices battered by a demand drop linked to lockdown measures aimed at stopping the spread of the coronavirus.
The group agreed to extend the deal on Saturday during the 11th OPEC and non-OPEC Ministerial Meeting held via videoconference, under the Chairmanship of Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy, and co-Chair Alexander Novak, Minister of Energy of the Russian Federation.
In a statement at the end of the meeting, the organisation said that all participating countries reconfirmed the existing arrangements under the April agreement.
It said they subscribed to the concept of compensation by those countries that were unable to reach full conformity (100 per cent) in May and June, with a willingness to accommodate it in July, August, and September, in addition to their already agreed production adjustment for such months.
They “agreed without dissent that the full and timely implementation of the agreement remains inviolable, based on the five key elements, and endorsed the ‘Statement on the Declaration of Cooperation,” according to the statement.
The meeting also called upon all major oil producers to proportionally contribute to the stabilisation of the oil market, taking into consideration the substantial effort made by the OPEC and non-OPEC participating countries of the DoC.
The meeting decided that an OPEC and non-OPEC Ministerial Meeting would convene in Vienna, Austria, on December 1, 2020.