Vienna: OPEC and its oil-producing allies agreed on Saturday to extend the historic 9.7 million barrels per day production cut for an additional month in an ongoing effort to balance the global oil market. The agreement was finalized during the group’s video-conference meeting.
“Today we have grounds to be cautiously optimistic about the future, but we are not out of the woods yet and challenges ahead remain to be seen,” Saudi Arabia’s Energy Minister Prince Abdulaziz said in opening remarks as the OPEC+ meeting began. He urged the group to display unity and come to a swift decision.
“Together we are stronger, together we can restore stability to oil markets and help rebuild the global economy,” he said.
One ongoing issue for OPEC+ has been nations not abiding by their prescribed quotas, and Saturday’s agreement is contingent upon greater levels of compliance. Nations that have failed to curb output by their allocated amount must enact additional cuts in July, August and September in order to make up for non-compliance in May and June.
