The Minister of Petroleum and Mineral Resources, Tarek El Molla, participated in the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting on reducing oil supplies in the global oil market to restore its balance.
El Molla pointed out that Egypt’s participation in the meeting allows it to follow-up and coordinate efforts with the OPEC+ group and support the cooperation initiatives by oil producers to stabilize the global oil market in a way that will reflect positively on all parties; the oil-producing countries, consumer countries, and international oil companies (IOCs).
OPEC+ agreed to cut overall oil production by 10 million barrels per day (mmbbl/d) effectively from May 1 through June 30, according to a press release.
The reduction plans will continue from July until December by 8 mmbbl/d, followed by 6 mmbbl/d cuts for 16 months beginning from January 2021 until April 2022.
The meeting was set to handle the collapse of world prices and to return the supply and demand equilibrium in the oil market which was affected by the coronavirus (COVID-19) outbreak. Another meeting is scheduled to be held on June 10, 2020, to determine other necessary measures to achieve balance in the global oil market.