OPEC Ministers Meet to Decide Supply Cut2020-06-07OPEC ministers on Saturday came together on videoconference to discuss what policy to adopt on oil production in coming months amid falling demand due to the coronavirus outbreak.
The 179th ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC) started through videoconference on Saturday with a speech from Mohamed Arkab, the rotating president of the producer group.
OPEC members are expected to discuss the compliance of member states to the oil supply cut as well as policies to follow in coming months.
Iran: OPEC to Keep Cutting Output If Non-OPEC Agrees
Iran’s Minister of Petroleum Bijan Zangeneh said OPEC ministers agreed on Saturday to continue cutting 9.7 mb/d from their output provided that non-member allies follow suit.
“It was decided that the agreement on cutting 9.7 mb/d from output should be conditional on the agreement of 10 non-OPEC producers,” he told reporters as he left the meeting held through videoconference.
Zangeneh also said there was no “challenge” between OPEC states, adding: “The agreements went ahead as planned.”
He said the main issue was compliance by some members like Iraq with production cut quota. He added that they promised to compensate in coming months.
CORRECTED--OPEC Partners Agree to Extend 9.6 mb/d Output Cut
Non-OPEC ministers gave the nod to OPEC’s earlier proposal for extending for another one month the previously reached agreement on cutting 9.6 mb/d from their output in a bid to help shore up prices.
The extension did not include Mexico with a previously pledged 100,000 b/d cuts.
The agreement came in a videoconference meeting held immediately after OPEC ministers agreed on the production cut.
Iraq, Nigeria, Angola and Kazakhstan agreed to compensate for their non-compliance in July, August and September.
13-member OPEC and their 10 allies – collectively OPEC+ - in their Declaration of Cooperation in April agreed on a three-phase production cut, starting from 9.7 mb/d for two months to continue at 7.7 mb/d for six months and then at 5.8 mb/d for another 16 months.
If agreed, the 9.6 mb/d cut will continue for up to the end of July.
Iran, Libya and Venezuela are exempt from any cuts.