The Organization of Petroleum Exporting Countries and other producers (OPEC+) is going to the next phase of its supply restriction pact and should reduce its production cuts from August as demand for oil recovers, said Saudi Energy Minister Abdulaziz bin Salman on Wednesday (15).
"As we move towards the next phase of the agreement, the additional supply resulting from the relaxation in production cuts will be consumed as demand continues on its recovery path," Prince Abdulaziz said.
According to the minister, the cuts will in practice be greater than 7.7 million barrels per day, thanks to a plan that provides compensation for countries that produced more in previous months. In addition, he also clarified that there will be no increase in Saudi oil exports in August, since additional production will be consumed in the domestic market.
OPEC+ has restricted production since May by 9.7 million barrels per day, or 10% of global supply.