OPEC+ eases oil cuts as world economy slowly recovers
Saudi’s Energy Minister, Abdulaziz bin Salman has announced that the Organisation of the Petroleum Exporting Countries and its allies, including Russia, will ease oil supply cuts from next month since there is a gradual recovery of global economies from the effects of the coronavirus pandemic.
In a meeting of energy ministers of oil producing countries on Thursday July 16, 2020, Abdulaziz said, “As we move to the next phase of the agreement the extra supply resulting from the scheduled easing of production cut will be consumed as demand continues on its recovery path.”
Abdulaziz specified that Saudi Arabia’s oil exports in August would “remain the same as in July because some 0.5 million bpd of extra barrels Riyadh was set to pump will be used domestically.”
Since May, OPEC+ countries, led by Russia and Saudi Arabia, have been cutting output by 9.7 million barrels per day (bpd), after the virus undermined a third of the global demand for crude.
After July, oil cuts were slated to decline to 7.7 million bpd until December.