\n\tThe Organization of the Petroleum Exporting Countries and its allies, \nknown as OPEC+, have been cutting output since May by 9.7 million \nbarrels per day, or 10% of global supply, after the virus destroyed a \nthird of global demand.<\/p>\n\n\n\n
\n\tAfter July, the record cuts are due to taper to 7.7 million bpd until \nDecember. Prince Abdulaziz said effective cuts would be deeper due to \ncompensation by countries which overproduced in previous months, The \nEconomic Times wrote.<\/p>\n\n\n\n
\n\tOPEC+ documents seen by Reuters showed that the cuts will ease to \naround 8.54 million bpd in August and September following compensations \nby Iraq, Nigeria, Angola, Russia and Kazakhstan.<\/p>\n\n\n\n
\n\t“As we move to the next phase of the agreement the extra supply \nresulting from the scheduled easing of production cut will be consumed \nas demand continue on its recovery path,” said Prince Abdulaziz.<\/p>\n\n\n\n
\n\tHe made his remarks as a panel known as the Joint Ministerial \nMonitoring Committee (JMMC) met on Wednesday to recommend the next level\n of cuts.<\/p>\n\n\n\n
\n\tOil prices have recovered to almost $43 a barrel from a 21-year low below $16 in April.<\/p>\n\n\n\n
\n\tThe recovery in prices has allowed some US producers to resume \nproduction. Russia and OPEC rely heavily on oil revenue but they will be\n keen not to push prices too high to give a further boost to rival US \noil output growth.<\/p>\n\n\n\n
\n\tOn Tuesday, OPEC said it saw demand recovering by 7 million bpd in 2021 after falling by 9 million this year.<\/p>\n\n\n\n
\n\tBut it also said it expected OPEC to supply an extra 6 million bpd of \ncrude to the market next year while production in the United States and \nRussia would remain broadly flat.<\/p>\n\n\n\n
\n\tPrince Abdulaziz also said Saudi oil exports in August will remain the \nsame as in July because some 0.5 million bpd of extra barrels the \nkingdom was set to pump will be used domestically.<\/p>\n","protected":false},"excerpt":{"rendered":"
OPEC and allies such as Russia will ease record oil supply curbs from August as the global economy slowly recovers from the coronavirus pandemic, Saudi Energy Minister Prince Abdulaziz bin Salman said on Wednesday. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been cutting output since May by 9.7 […]<\/p>\n","protected":false},"author":1,"featured_media":3289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[747,8,6],"tags":[639,178,56,213,1189],"yoast_head":"\n