According to the initial agreement reached on 12 April by the joint producer group OPEC Plus, production was expected to increase gradually after June. «I welcome OPEC-plus for achieving an important agreement that comes at a crucial time today, as oil demand continues to recover and the world economy is reopened,» U.S. Energy Secretary Dan Brouillette wrote on Twitter after the extension. Oil ministers from the Organization of petroleum exporting countries and other Russian-led producers met via video conference on Saturday and agreed to continue to cut 9.7 million barrels per day – or about 10 percent of world production in normal times – until July, according to an OPEC press release. «Despite the economic and financial circumstances facing Iraq, the country maintains the agreement,» OPEC spokesman Assem Jihad, a spokesman for Iraq`s oil ministry, said on Saturday. Iraq, which had one of the worst compliance rates in May, agreed to further cuts, although it was unclear how Baghdad would reach an agreement with oil companies to curb Iraqi production. [OPEP/O] The big question is how long the agreement will last. It will not begin until May 1, when OPEC will reduce production by nearly 10 million barrels per day, or about 10% of global demand. On paper, the United States, Canada and Brazil contribute to this amount. However, these reductions will only last until the end of June, if they are reduced by the end of December. The agreement then calls for further easing of the cuts, which are said to continue until April 2022. The 23-member OPEC Oil Nations agreed on Saturday to extend the duration of the agreement by an additional month until the end of July 31. U.S.
shale oil production has slipped anyway in recent weeks, Because coronavirus has influenced demand, but the key element of the deal appears to have been that President TrumpDonald Trumpsenators has reached an agreement on the Fed`s powers that prepare the scene for the passage of coronavirus discharge Nearly 200 organizations allegedly hacked by Russia: Cybersecurity firm Trump has appointed Sidney Powell as special adviser for election investigations: Mehr. Instead of the cameo role I predicted a week ago, he was the leading male role. It seems to have hit the heads of Russian President Vladimir Putin Vladimir Putin Plays hack effects, question whether Russia involved the U.S. two Russian consulates Hillicon Valley close: Lawmakers ask if massive hack amounts to the act of war Microsoft says systems have been exposed to massive SolarWinds attack Senators push to keep tech liability shield out of UK trade agreement MORE and Saudi Crown Prince Mohammad bin Salman, aka MbS, although officials are not briefing such a apparently undiplomatic version of events. He certainly reached a compromise on Mexico`s otherwise uncompromising position. The April agreement called for restrictions to be strangled at the end of June. But OPEC officials said Saturday that the group must remain cautious in the face of an uncertain return in global demand for crude oil. «This is an unprecedented agreement, because it`s not just between Opec and Opec… but also the world`s largest supplier, the United States and other G20 countries that have agreed to support the agreement, both in terms of reducing production and using some of the surface supply, by storing it,» said Sandy Fielden, director of Oil Research for the Morningstar research company, the BBC. Cheap oil is good for most of us, although less so when we are stuck at home instead of going to work or going on weekends for fun.