OPEC+ Extends Oil Production Reduction Until July 31

Iran's Oil Minister Bijan Zanganeh Saturday said that the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to keep their oil supply at 9.7 million barrels per day (mbd) until July 31.

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"It was decided to extend the 9.7 million limit for one more month," Zanganeh said after taking part in a videoconference in which the countries responsible for the 60 percent of the global oil supply were present.

He also announced that Iraq and other countries, which did not fully comply with the commitment to reduce production by 23 percent during May and June, will withdraw from the market those millions of barrels that pumped above the established quota.

"Member Countries reaffirmed their continued focus on fundamentals for a stable and balanced oil market, in the interests of producers, consumers, and the global economy," the OPEC stated through a public statement.

During the OPEC meeting, Venezuela's Economy and Oil Minister Tareck El Aissami expressed his country's interest in achieving balances in global energy markets as soon as possible.

"We hope that OPEC member countries and non-member countries will join the extension. We need energy stability and fair prices, so we must strengthen cooperation and dialogue," El Aissami said.

"Given the global economy's unprecedented situation caused by COVID-19, there is no doubt that OPEC+ is a central column to overcome the global financial-economic crisis," he added.

Among the non-OPEC countries that are expected to meet the oil supply reduction are Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan.