OPEC plus and its allies agreed June 6 to prolong historic production cuts through July after oil ministers from the OPEC countries, as well as other producers led by Russia, met by video conference.

OPEC+ had initially agreed in April that it would cut supply by 9.7 MMbbl/d, which represents some 10% of the world’s overall supply, during May and June in an effort to stabilize the oil market that had collapsed due to the coronavirus crisis.

OPEC+ has decided to extend its current cuts for an additional month till the end of July at 9.6 MMbbl/d, excluding Mexico, which ceased to pursue its commitments towards the agreement, Dr. Yousef Alshammri, CEO of CMarkits, told Hart Energy. “Mexico has cited its inability to continue shutting its fields which has cost the country thousands of jobs,” he explained.

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