To counter the demand cut as a result of COVID-19 lockdowns across the globe, the OPEC producers and its allies have agreed to cut output by around 10% of global supply.
The OPEC+ group comprising of member producers and allies including Russia has agreed to cut output in May and June by 10 million barrels a day to help prop up prices. While other nations are expected to cut output by another 5 million barrels.
The cuts would be eased to eight million barrels a day between July and December and later would be eased again to six million barrels a day between January 2021 and April 2022. It was agreed in the talks held via video conference on April 9.
The talks will be followed by a conference call on April 10 between the Energy Ministers from the G20 countries that will be hosted by Saudi Arabia.