The Organization of Petroleum Exporting Countries (Opec) and its cooperation partners (Opec +) have agreed to extend the current reduction in their oil production by another month. The oil cartel announced this after negotiations in Vienna.
At the video conference, the participating countries voted for oil production to be cut by around ten million barrels (159 liters each) in July, too. This should drop oil prices again. Opec anticipates a drastic drop in oil consumption due to the economic consequences of the corona pandemic.
The existing agreements had contributed to a "preliminary recovery of the global economy and the oil market", Opec said. All major producers should now continue to commit to stabilizing the market. The major producing countries want to stop the fall in prices during the crisis.
Energy market to be stabilized
The requirements would have to be met 100 percent in July, said Russian Energy Minister Alexander Nowak. The situation improved after April was the worst month on the oil market. "We see a positive effect of the joint action, but the market is still fragile and needs support," he said, according to the Tass news agency. The agreements should now continue to have a positive impact on the stabilization of the energy market, said Kremlin spokesman Dmitri Peskow.
According to observers, an agreement was reached surprisingly quickly in the negotiations between the 13 member states. The talks had initially ended without agreement before moving on into the night a short time later.
In April, Opec + agreed to cut oil production by 9.7 million barrels a day for the months of May and June due to an unprecedented drop in prices. The cuts were originally to be gradually eased again from July to 7.7 million barrels by December.