OPEC and its allies led by Russia have agreed to cut their oil output by more than a fifth in order to prop up prices hammered in the coronavirus crisis.
In this regard, the group known as OPEC+ made up of Opec producers and allies including Russia, held talks via video conference.
The group, OPEC+, said that it would cut output in May and June by 10 million barrels to help prop up prices. The cuts will then be eased gradually until April 2022.
Meanwhile, the group and its allies also agreed to cut 10 million barrels per day (bpd), or 10 percent of global supplies. Reductions of 5 million bpd are expected to come from other nations.
The group also said that the cuts would be eased to eight million barrels per day between July and December. Then they would be eased again to six million barrels between January 2021 and April 2022.
Kirill Dmitriev, head of Russia’s wealth fund said, “We are expecting other producers outside the OPEC+ club to join the measures.”
OPEC+ talks will be followed by a call today (Friday) between energy ministers from the G20 major economies, hosted by Saudi Arabia.
Earlier global fuel demand has plunged by around 30m bpd, or 30% of global supplies, as steps to fight the virus have grounded planes.
ADVERTISEMENT
