New Delhi: As the impact of Covid-19 pandemic becomes clearer on oil demand, the world’s largest oil producing cartel – Organization of Petroleum Exporting Countries (OPEC) — and its allies led by Russia have finally decided to cut oil production beginning 1 May 2020 in a bid to stabilize oil markets and prop up prices.The group referred as ‘OPEC +’ had met in March to decide on extending production cuts but Saudi Arabia and Russia could not reach a consensus resulting in both the countries announcing increased production starting April 2020. The development had shocked oil markets and led to global benchmark oil prices tumbling to less than $30 per barrel. “In view of the current fundamentals and the consensus market perspectives, the participating countries agreed to adjust downwards their overall crude oil production by 10.0 mb/d starting on 1 May 2020, for an initial period of two months that concludes on 30 June 2020,” OPEC said in a statement.For the subsequent six months period between 1 July 2020 and 31 December 2020, the total adjustment agreed will be 8 million barrels per day and it will be followed by a 6 million barrels per day adjustment for a period… Read full this story
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