In meeting, OPEC+ agrees to deepen cuts

Sources told Reuters on Friday (6), that the OPEC+ group, formed by the Organization of Petroleum Exporting Countries (OPEC) and allies, agreed to deepen production cuts by 500,000 barrels per increasing the total cuts to 1.7 million bpd, or 1.7% of demand Global.

In view of this picture, Saudi Arabia and Russia have gained support for deeper cuts in production by OPEC and its allies, as they try to reduce the global oversupply in 2020 and sustain the Prices. “To balance the market, a cut of 500,000 barrels per day,” said Russian Energy Minister Alexandr Novak, after the conclusion of the seventh meeting.

According to sources, OPEC should bear approximately 340,000 bpd, while non-group producers will contribute to 160,000 bpd. Countries are expected to meet again on March 5 and 6.