OPEC and allies decide to extend oil production cut

On Saturday, OPEC and its oil-producing allies have made the decision to extend the group’s historic
production cut for another month as an initiative to make the global oil market stabilized. The said
agreement was confirmed during the group’s video-conference meeting.

“Today we have grounds to be cautiously optimistic about the future, but we are not out of the woods
yet and challenges ahead remain to be seen. Together we are stronger, together we can restore stability
to oil markets and help rebuild the global economy,” Saudi Arabia’s Energy Minister Prince Abdulaziz bin
Salman stated as a welcoming note as the OPEC+ meeting began. He pointed out the importance of
displaying unity and coming to a swift decision as a group.

Starting from May 1, the alliance cut production by 9.7 million barrels per day, although the cuts were
initially planned to begin declining on July 1, CNBC reported.

July’s production cut will be 9.6 million bpd after Mexico stated that it remained committed to the
group’s prior agreement. The country accounts for 100,000 bpd.

The cuts will be reviewed on a monthly basis, with the next meeting is supposed to take place in June
18.

(Reference: CNBC)