The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are set to ease the record 9.7-million barrels per day (mmbbl/d) production cuts as of August as demand has seen a continual rise, Saudi Arabia’s Energy Minister, Prince Abdulaziz Bin Salman, said at an OPEC+ meeting, according to the Saudi Gazette.
“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 continues on its recovery path,” Saudi Arabia’s energy minister Abdulaziz commented after a meeting of a ministerial advisory panel to OPEC+, known as the JMMC.
It has been decided that the record cuts of 9.7 mmbbl/d will not be continued and production cuts will subsequently be reduced by 2 mmbbl/d. However, for those who have shown poor compliance over the course of the cuts will have to compensate for their loose compliance.
Saudi Arabia will keep its August oil exports at the same level as in July, confirming earlier reports that the Kingdom would not be flooding the market.
OPEC+ decided to extend the record cuts throughout the month of July to aid the oil-price recovery.