OPEC and allied nations to extend cut production of 9.7-M BPD through end of July to boost prices.
Ministers of the cartel and outside nations like Russia met via video conference to adopt the measure, aimed at cutting out the excess production depressing prices as global aviation remains largely grounded due to the C-19 coronavirus chaos. It represents 10% of the world’s overall supply.
The decision came in a unanimous vote, UAE Energy Minister Suhail al-Mazrouei Tweeted. He called it a “a courageous decision and a collective effort deserving praise from all participating producing countries.”
Crude Oil prices have been gaining in part on hopes OPEC would continue the cut.
International benchmark Brent Crude Oil traded Saturday over 42bbl a Brent crashed below 20bbl in April.
US WTI Crude Oil futures rose 2.14, or 5.7%, at 39.55bbl, + 10.7% on the week.
Both benchmarks marked a 6th wk of gainers, lifted by the output cuts and signs of improving fuel demand as countries eased C-19 chaos lockdowns.
Have a healthy weekend, Keep the Faith!