ALGIERS-The 11th OPEC and Non-OPEC ministerial meeting bringing together the signatories of the Cooperation Statement, held Saturday by videoconference under the co-chairmanship of Saudi Arabia and Russia, decide to extend the 9.6 million barrels per day (bpd) production cut agreement to 31st July 2020, announced Energy Minister and Chairman of the Conference of the Organization of Petroleum Exporting Countries (OPEC) Mohamed Arkab.
The announcement was made to the press by Minister of Energy and President of the OPEC Conference, Mohamed Arkab, at the end of the meeting, which was preceded by the 179th meeting of the OPEC Conference, also held by videoconference.
According to Arkab, this reductions aims to absorb the additional quantities of oil supply still available on the market, estimated by OPEC at nearly 10 million barrels per day.
The OPEC + countries also agreed to hold three monthly ministerial meetings by video-conference to monitor market developments and the rate of implementation of the reduction agreement by all the signatory countries, announced the same official.
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“The implementation of this agreement is very important during this three-month period,” he continued.
Arkab stressed that the decisions taken at the 11th OPEC+ Conference took account of reports of a resumption of several economic activities that will also help to absorb the additional quantities on the market.
Calling “historical” the agreement reached at the 11th OPEC+ conference, Arkab said that it aimed at “stabilizing available supply and demand.”
“This balance is necessary and indispensable for the oil sector. Prices will certainly be impacted by this agreement”, affirmed the same official.