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The Organization of Petroleum Exporting Countries (OPEC) has agreed with its non-bloc partners to extend oil production cuts for an additional month until the end of July.
The decision was taken at a video conference meeting yesterday.
Observers hope that production cuts will contribute to the stability of black gold prices, after a significant decline in demand due to the outbreak of the Corona epidemic.
The production cuts, since their implementation, have resulted in a noticeable recovery in oil prices, especially with the start of easing the closures imposed by the epidemic.
But Russian Energy Minister Alexander Novak called the market “still fragile”, calling on all countries participating in the agreement to abide strictly by its terms.
OPEC said in a statement: “All participating countries agreed to the option of extending the first stage of the production cut process, scheduled for May and June, for an additional month.”
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As part of an attempt to raise oil prices that had fallen as demand declined, last April, major oil production cuts were agreed in May and June.
In the April agreement, the “OPEC” group and its allies pledged to reduce oil production by 9.7 million barrels per day from May 1 to the end of June, with the reduction in the amount gradually reduced from July by 7.7 million barrels per day until December. /December.
Algerian Energy Minister Mohamed Arqab indicated to Agence France-Presse that there is agreement that the amount of the reduction in July will be 9.6 million barrels per day – 0.1 less than the reduction agreed in May and June.
Erqab, who holds the current OPEC presidency, added that energy ministers from the major oil-exporting countries would meet monthly to evaluate the agreement.
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