OPEC members led by Saudi Arabia and other key oil producers agreed Saturday to extend historic output cuts through July.
The 13-member cartel and its allies, among them Russia, decided to extend by a month deep cuts, first agreed in April for May and June, to boost prices hit hard by the new coronavirus pandemic, an OPEC statement said.
“All participating countries… agreed the option of extending the first phase of the production adjustments pertaining in May and June by one further month,” it said.
Prices have plummeted over falling demand as countries around the world have imposed strict lockdowns to stop the spread of the new coronavirus.
Under the terms of the April agreement, OPEC and the so-called OPEC+ countries pledged to cut output by 9.7 million barrels per day (bpd) from May 1 until the end of June.
The cuts were then to be gradually eased from July, to 7.7 million bpd until December.
But Saturday’s meeting agreed to extend the May and June output cuts.