During the virtual meeting, Opec + have agreed to extend record oil production cuts of nearly 10 million barrels of oil a day until the end of July. The original plan was to begin increasing production in July, but instead have decided to continue at a reduced level of production -- this time by 9.6 million barrels per day.
Iraq, Nigeria, Angola and Kazakhstan agreed to compensate for their non-compliance in July, August and September. Iran, Libya and Venezuela are exempt from any cuts.
Algerian Oil Minister Mohamed Arkab, the current OPEC president said: “Despite the progress to date, we cannot afford to rest on our laurels,” Arkab said. “The challenges we face remain daunting.”
Russian Energy Minister Alexander Novak similarly called April “the worst month in history” for the global oil market. “The market is still in a fragile state and needs support. That is why 100% implementation of the deal by all participants is important as never before," argued Novak.
“Demand is returning as big oil-consuming economies emerge from pandemic lockdown. But we are not out of the woods yet and challenges ahead remain,” Saudi Arabian Energy Minister Prince Abdulaziz bin Salman noted.