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"Renewed lockdowns continue to impact the global economy and oil demand recovery, with prevailing uncertainties over the winter months," OPEC warned.
The Organization of Petroleum Exporting Countries (OPEC) and allied nations agreed Thursday to apply a voluntary adjustment of 0.5 million barrels per day (mbd) that will path a reduction of world oil production from 7.7 mbd to 7.2 mbd.
The announcement comes after the conclusion of the 12th OPEC and non-OPEC Ministerial Meeting (ONOMM) that took place virtually from November 28 until December 3.
OPEC and the collaborating nations agreed to start the adjustment starting January 2021 and to extend the compensation for the period of January-March in order to ensure full compensation of overproduction.
The 12th ONOMM also concurred to hold monthly ministerial meetings to evaluate market conditions and decide on further production adjustments not exceeding 0.5 mbd.
HE Abdelmadjid Attar, #OPEC President and Algeria’s Minister of Energy, noted progress in laying the foundation for an economic and oil market recovery, but added: “Uncertainty and economic sluggishness continue as the COVID-19 pandemic resurges across the globe.” pic.twitter.com/w98qp7MNHb