OPEC, Russia to extend record oil cuts to end of July
OPEC, Russia and allies were set on Saturday to extend record oil production cuts until the end of July after crude prices doubled in the past two months on the back of their efforts to withdraw almost 10% of global supplies from the market, Trend reports citing Reuters.
According to a draft declaration seen by Reuters as a video conference opened, the group known as OPEC+ was also set to demand countries such as Nigeria and Iraq which exceeded quotas in May and June compensate with extra cuts in July to September.
OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December.
Benchmark Brent crude climbed to a three-month high on Friday above $42 a barrel, after diving below $20 in April. Prices still remain a third lower than at the end of 2019.
“Despite the progress achieved to date, we cannot afford to rest on our laurels,” Algerian Energy Minister Mohamed Arkab, the current OPEC president, said as he opened Saturday’s talks.