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OPEC to begin systematic reduction in crude oil production

The Organisation of Petroleum Exporting Countries, OPEC says, the Coronavirus Disease Pandemic has compelled it to assess and reassess the consequences in the Oil Market on an almost daily basis to find solutions to help all people of the world, the Industry and related Businesses. 

This is contained in a Statement by the Secretary General of OPEC, Dr. Muhammed Sanusi Barkindo. 

According to the Statement, the situation is evident in the responsive and responsible decision taken during a Video Conference by participating countries in the ‘Declaration of Cooperation’ to adjust crude oil production by 10 million barrels per day beginning on 1st May 2020, for an initial period of two months.  It adds that, production of 8 million barrels per day would then follow from July to December 2020; and will be reduced to 6 million barrels per day for the period of January 2021 to April 2022, in the interests of producers, consumers, and the global economy. 

The Statement notes that, as OPEC navigates these extraordinary times, there is the need to appreciate that any shortfall in investments in the coming year could sow the seeds for future energy security issues in the years ahead and calls for cooperation to ensure stability in the global Oil Market.