OPEC+ members met, yet didn’t discuss prolonging of oil production cuts

On Thursday meeting, OPEC+ members insisted on countries such as Iraq and Kazakhstan to agree on oil production cuts even after July. Yet, the issue remains unsolved, and so production cuts could still be valid even after August.

OPEC

The Organization of the petroleum exporting countries and its allies associated in OPEC+ group, agreed on oil production cuts of roughly 10 million barrels back in May. The agreement is valid till the end of July and countries now discuss how to proceed further. According to an official statement, there has been no final decision yet. The panel will continue in negotiations.

Yet, a source familiar with the issue told Reuters that oil production cuts could be worth 7,7 million barrels a day from August till December. The volume of production cuts would lower in roughly 2 million barrels a day, compared to the current state. 

OPEC+ panel has announced after its meeting that Iraq and Kazakhstan came up with an idea on how to compensate oil production cuts from July to August. Yet, the plan has not been approved. Analysts believe that even though OPEC+ does not ease its production cuts, the actual oil production offer will be reduced anyway. OPEC and OPEC+ aim to increase oil price in the long-term, and it might be the result in the end. 

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