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News > Austria

OPEC To Reduce Oil Production by 0.5 Million Barrels per Day

  • OPEC Secretary-General Mohamed Barkindo opens 8th Technical Meeting, Vienna, Austria, Nov. 27, 2020.

    OPEC Secretary-General Mohamed Barkindo opens 8th Technical Meeting, Vienna, Austria, Nov. 27, 2020. | Photo: Twitter/ @OPECSecretariat

Published 4 December 2020
Opinion

"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.

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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.

Pledging to "vigorously" pursue sustainable oil market stability, Saudi Arabia's Prince Abdul Aziz bin Salman was ratified in his role as meeting chairman.

The meeting also welcomed the appointment of Russia's new Energy Minister Nikolai Shulginov who replaces Deputy Prime Minister Alexandr Novak as his country's representative to OPEC.

The non-OPEC countries present at the meeting were Azerbaijan, Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan.

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