OPEC, allies agree to deepen oil output cut


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OPEC, allies agree to deepen oil output cut

On Thursday, the 5th of December 2019, the OPEC members alongside their Russia-led allies had reached an accord to incline one of the steepest oil output cut global markets had ever witnessed aimed at preventing an exacerbating supply glut and rebalancing of global crude oil market, nonetheless, the deal would be place for the first quarter of 2020 despite an intensified outcry from a number of oil-dependent economies like of Iraq to extend it until June, 2020.

In point of fact, the OPEC members started off a meeting in OPEC’s headquarter in Vienna at GMT 16.30, while the members would meet producers from Kremlin alongside others, a pact dubbed as OPEC+, on Friday (December 6th) in order to rubber stamp the accord reached late on Thursday (December 5th).

Meanwhile, since an existing output curb on crude oil from OPEC+ nations, accountable for producing more than 40 per cent of world’s entire crude oil output, was set to expire by March 31st, 2020, Russian Energy Minister, Alexander Novak was quoted saying late on Thursday (December 5th) that the second- and third-largest crude oil producers across the globe, Saudi and Russia, had agreed to extend an existing oil output curb by 500,000 barrels per day to 1.7 million bpd, 1.7 per cent of the world’s entire crude oil supply.