Positive response of supply cut on oil market, says OPEC Chief

The oil market is responding positively after the decision made by the OPEC+ nations to make supply cut and is encouraged by a hike in oil prices.

The Secretary General of OPEC, Mohammad Barkindo said, “The oil markets have responded positively to the historic agreement, as well as its robust implementation by participating countries… All in all there is a gradual but steady convergence of the fundamentals of supply and demand.”

The cut is in lieu with the latest decision of the Organization of the Petroleum Exporting Countries, Russia and other allies, a group known as OPEC+ to cut supply by a record 9.7 million barrels per day (bpd) from May 1. The agreement of the OPEC+ is to be reviewed on June 10 in the next virtual meet of the OPEC+ with the full month’s data on compliance being available.

Photo Credit : https://en.wikipedia.org/wiki/Mohammed_Barkindo#/media/File:Mohammed_Barkindo_September_2016_(29604098012).jpg

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