The Organization of the Petroleum Exporting Countries (OPEC) and 10 non-OPEC countries including Russia, dubbed as OPEC+, agreed to extend the oil production cut deal until March 2020 in a bid to balance the oil market, the cartel announced Tuesday.
The decision came after the 6th OPEC and non-OPEC Ministerial Meeting, held in Vienna under the co-chairmanship of OPEC’s President Manuel Salvador Quevedo Fernandez, the People's Minister of Petroleum of the Bolivarian Republic of Venezuela, and the Minister of Energy of the Russian Federation Alexander Novak.
According to OPEC, the sides reaffirmed "the continued commitment of the participating producing countries in the ‘Declaration of Cooperation’ to a stable market, the mutual interest of producing nations, the efficient, economic, and secure supply to consumers, and a fair return on invested capital, and noted the overall improvement in market conditions and sentiment, and the return of confidence and investment to the oil industry."
"In view of the underlying large uncertainties and its potential implications on the global oil market, the 6th OPEC and non-OPEC Ministerial Meeting hereby decided to extend the decision taken on voluntary production adjustments at the 5th OPEC and non-OPEC Ministerial Meeting on 7 December 2018, for an additional period of nine months from 1 July 2019 to 31 March 2020," the statement read.
The first OPEC and non-OPEC was held in December 2016, where the cartel and 11 non-OPEC oil producing countries for the first time agreed to accelerate the stabilization of the global oil market through voluntary production adjustments, which amounted to approximately 1.8 million barrels per day. The first agreement was effective for an initial period of six months.
By Ebru Sengul