OPEC+ to cut oil output by 9.7 mln bpd in May-June, 7.7 mln bpd to end of 2020, 5.8 mln bpd to May 2022
MOSCOW. April 13 (Interfax) - OPEC+ countries agreed at a meeting on Sunday to reduce oil production and called on all major producers to provide commensurate and timely contributions to the efforts aimed at stabilizing the oil market, OPEC said in a press release.
OPEC+ countries agreed to cut output by 9.7 million barrels per day in May and June. Subsequently, they will dial back the production cut to 7.7 million bpd in the period from July 1 to December 31, and to 5.8 million bpd in the 16 months from January 1, 2021 to April 30, 2022.
The baseline for calculating the cuts is the oil production level of October 2018, except for Russia and Saudi Arabia, both of which will have the same baseline level of 11 million bpd.
The agreement will be valid until April 30, 2022, but its extension will be reviewed in December 2021.
Compliance with the agreement will be monitored on the basis of data for production of oil (condensate is not mentioned) based on information from secondary sources, in line with the method used for OPEC members.
The next OPEC+ meeting is scheduled to be held on June 10 via webinar and order to determine further possible actions needed to balance the market.
The countries also extended the mandate of their Joint Ministerial Monitoring Committee and its members.