Nigeria's foremost Online Energy News Platform

OPEC + oversight committee may consider extending production cuts to August

…During its meeting tomorrow, Thursday

The Russian “TAS” agency quoted two informed sources as saying that the OPEC + Ministerial Monitoring Committee, which is scheduled to hold a meeting tomorrow, may consider extending the cuts applied since May, for an additional month, despite the fact that the main agenda includes only an issue – the current compliance rates for production quotas stipulated in the Alliance Agreement.

The agency quoted one of the sources, saying, in response to a question whether the ministers will discuss the issue of extending the current reduction level until next August: “Everything is possible.” Another source indicated that the monitoring committee is not empowered to take decisions, and that its main authority is to “monitor compliance with the agreement.”

The OPEC + countries had agreed, earlier this month, to extend oil production cuts until July.

OPEC + members agreed in April to cut production by 9.7 million barrels per day during May and June, by 7.7 million barrels in the second half of this year, and by 5.8 million barrels until the end of April. 2022, aiming to support oil prices, after declining sharply due to the decline in demand due to the Corona pandemic.