The Organization of the Petroleum Exporting Countries (OPEC) has agreed to ease production cuts in the oil industry during a video conference call with various officials of member countries and allies such as Russia on Wednesday.
Since last May, OPEC have been cutting oil output by several million barrels per day effectively lowering production as demand decreased significantly at the height of the coronavirus lockdowns.
«As the cuts ease, those participants that did not achieve full conformity will have the opportunity to meet the compensation targets with relative comfort,» explained Prince Abdulaziz bin Salman, Saudi Arabia's energy minister.
«I believe that moving in accordance with the initial agreement and a slight easing of current production limitations indicating the second phase of production limitations to 7,7 million barrels per day is justified and would allow us to avoid market volatility,» said Russian Energy Minister Alexander Novak.
Earlier this year, OPEC and a group of other oil producers, including Russia, had agreed to production cuts in an effort to curb increasingly low prices and stagnating demand amid the lockdowns put in place to fight the coronavirus pandemic.