OPEC+ to meet to extend record oil production cuts

The OPEC+ producers, an alliance of the OPEC and its allies led by Russia is to meet on June 6 to discuss the extension of the record oil production cuts.

In the wake of collapsing prices pertaining to the coronavirus pandemic, the OPEC+ previously agreed to cut supply by a record 9.7 million barrels per day (bpd) during May-June. Cuts have been due to taper to 7.7 million bpd from July to December.

The OPEC+ apart from discussing the extension of oil production cuts, will also discuss measures to push countries such as Iraq and Nigeria to comply better with existing curbs. Iraq had one of the worst compliance rates in May and they have agreed to additional cuts in coming months. Nigeria too have said to adhere to reach the full compliance.

Sources of OPEC have said that countries that produced above their quota in May and June must compensate by cutting more in future months.

Photo Credit : https://en.wikipedia.org/wiki/OPEC#/media/File:Flag_of_OPEC.svg

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