OPEC and allies agree to extend historic output cut to end of July

A man returns a gas nozzle back to the pump after pumping gas at a BP gas station in the Brooklyn borough of New York, the United States on April 9, 2020. (Photo by Michael Nagle/Xinhua)

VIENNA,   (Xinhua) — The Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, known as OPEC+, agreed on Saturday to extend the historic 9.7 million barrels per day (bpd) production cut till the end of July 2020.

All participants of the 11th OPEC and non-OPEC Ministerial Meeting held online agreed to extend the cut of 9.7 million bpd pertaining in May and June by one further month, according to a statement published on OPEC’s website.

The meeting recognized that the output cut carried out in May had helped garner “tentative signs of a recovery” in the global economy and oil market.

Photo taken on April 9, 2020 shows pump nozzles at a gas station in Brussels, Belgium. (Xinhua/Zhang Cheng)

It noted that global oil demand was still expected to contract by around 9 million bpd for the whole of 2020.

In order to closely review the energy market and observe the implementation of the agreement, the Joint Ministerial Monitoring Committee (JMMC) is to meet monthly until December 2020, with the next JMMC meeting set for June 18, said OPEC.

The meeting also decided that the next OPEC and non-OPEC Ministerial Meeting will convene in Vienna on Dec. 1, 2020.