OPEC+ Eases Record Oil Cuts
OPEC and allies such as Russia agreed on Wednesday to ease record oil supply curbs from August as the global economy slowly recovers from the coronavirus pandemic.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been cutting output since May by 9.7 million barrels per day, or 10% of global supply, after the virus destroyed a third of global demand.
From August, cuts will officially taper to 7.7 million bpd until December.
Saudi Energy Minister Prince Abdulaziz bin Salman said the effective curbs would be deeper because countries which overproduced in May-June would make extra cuts in August and September to make up, so total cuts would end up amounting to about 8.1 million to 8.3 million bpd.
"As we move to the next phase of the agreement the extra supply resulting from the scheduled easing of production cuts will be consumed as demand continues on its recovery path," said Prince Abdulaziz after a meeting of a ministerial advisory panel to OPEC+, known as the JMMC.
OPEC+ has delivered compliance of 107% with their agreed oil output cuts in June