Organization of the Petroleum Exporting Countries (OPEC) and its allies agree to deepen oil production cuts by a further 500,000 barrels per day (b/d) through to March 2020.
According to the OPEC official statement, the corresponding decision was made at the 7th OPEC and non-OPEC Ministerial Meeting held in Vienna on Friday, December 06. These would lead to total adjustments of 1.7 mb/d.
The previous agreement, concluded during the 175th Meeting of the OPEC Conference and 5th OPEC and non-OPEC Ministerial Meeting last year, included oil production cuts of 1.2 mb/d.
This additional adjustment would be effective as of January 01, 2020 and is subject to full conformity by every OPEC and non-OPEC producing countries participating in the Declaration of Cooperation (DoC), the organization said in the statement.
OPEC and non-OPEC countries will reduce daily oil output by 372,000 tons and 131,000 tons, respectively. Saudi Arabia (167,000 tons) and Russia (70,000 ton) are the biggest contributors to the new deal.
The OPEC, founded on September 14, 1960 in Baghdad, currently includes Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela (the five founders), plus the United Arab Republic, Libya, Algeria, Nigeria, Angola, Ecuador, Equatorial Guinea, Gabon, Republic of Congo.
Non OPEC countries that comply with Oil-Cuts Agreement include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan and South Sudan.