OPEC and its allies announced late Sunday that they have agreed to lower their crude oil production by a total of 9.7 million barrels per day (bpd) starting from May 1.
The initial output cut of 9.7 million bpd will be valid through June 30 this year for two months, OPEC said in a statement.
For the following six-month period, from July 1 to Dec. 31 this year, the total output cut will be eased to 7.7 million bpd.
This will be followed by a 5.8 million bpd adjustment for a period of 16 months, from Jan.1, 2021 to April 30, 2022.
The 23 members in the group, known as OPEC+, will lower their individual oil productions based on their output levels in October 2018, the statement said.
However, both OPEC heavyweight Saudi Arabia and non-OPEC leader Russia will lower their individual productions from the level of 11 million bpd.
The current agreement will be valid until April 30, 2022, with the review of an possible extension in December 2021.
OPEC+ member countries will meet on June 10 this year via videoconference to determine whether any further actions are required to balance the global oil market.
By Ovunc Kutlu