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OPEC and Non-OPEC member agrees on extension crude oil production cuts

The Organization of Petroleum Exporting Countries (OPEC) and its counterpart led by Russia, has made a decision to extend oil production cuts by one month.

OPEC and its counterpart known as the OPEC+ has agreed in April to reduce output by a record 9.7 million barrels per day to boost oil prices in the global market which has been severely affected by Covi19, which in turn has affected global demand for the product.

There was a consensus among member states to extend the deal on Saturday during the 11 OPEC and non-OPEC ministerial virtual meeting, chaired by Prince Abdul-Aziz bin Salman, who is Saudi Arabia Minister of Energy and co-chairman Alexander Novak of Russia.

In a statement by OPEC, when the meeting was concluded, it was said that all participants reaffirmed the existing arrangements under the April agreement.

According to the statement, they agree to the idea of compensating those countries that are unable to reach full conformity in the month of May and June, with the desire to allow it in July, August, and September, together with the already agreed production adjustment for those months.

They agreed without any objections that the full and timely implementation of the agreement remains sacrosanct, based on the five key elements, and approved the statement on the declaration of co-operation.

The meeting also urged all major oil producers to equally contribute to the stabilization of the oil market price, taking into consideration the consistent effort made by OPEC and non-OPEC members of the DoC.

The meeting concluded that an OPEC and non-OPEC ministerial meeting would hold in Vienna, Austria, on December 1st, 2020.

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