OPEC+ set to ease record cuts from August – Saudi Gazette

OPEC+ set to ease record cuts from August – Saudi Gazette

LONDON “” The Organization of the Petroleum Exporting Countries (OPEC) plus Russia that forms the OPEC+ group is easing the record 9.7-million-bpd production cuts as of August as demand has started to recover, Saudi Arabia's Energy Minister, Prince Abdulaziz Bin Salman, said at an OPEC+ panel meeting on Wednesday, according to the Oilprice.com report.

"As we move to the next phase of the agreement the extra supply resulting from the scheduled easing of production cut will be consumed as demand continue on its recovery path,“ the Saudi minister said, as carried by Reuters.

The Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ group met on Wednesday to decide how to proceed with the cuts. OPEC+, led by OPEC's top producer Saudi Arabia and by Russia, agreed in June to extend the record production cuts of 9.7 million bpd by one month through the end of July.

According to the original agreement from April, OPEC+ was to cut 9.7 million bpd in combined production for two months “” May and June “” and then ease these to 7.7 million bpd, to stay in effect until the end of the year. Then, from January 2021, the production cuts would be further eased to 5.8 million