Coronavirus: Top oil producing countries meet on Saturday to discuss production cuts
VIENNA: Top oil-producing countries have decided to meet Saturday via video conference, a source close to OPEC said on Friday, to assess their current agreement on output cuts amid the coronovirus crisis.
OPEC’s 13 members, including Russia led by Saudi Arabia and ten of their allies, were originally scheduled to meet on 9 and 10 June.
But Algeria, which currently chairs the Vienna-based organization, proposed a change in date, according to analysts, to better synchronize the decisions of oil producers with the timing of transactions on the oil market.
Countries are discussing an agreement in April to cut production with the aim of raising oil prices, which has plummeted due to falling demand as countries around the world imposed strict lockdowns to prevent the spread of new coronaviruses .
Members of OPEC and the so-called OPEC + have promised to cut production by 9.7 million barrels per day (MBB) from May 1 to the end of June.
Under the terms of the agreement, historical reductions will be gradually relaxed from July with 7.7 mbd removed from the market from July to December.
OPEC and OPEC + are set to discuss extending beyond June to 9.7 mAb, although the agreement may be difficult to reach. The April agreement was signed after days of conflict between key players.