OPEC, Russia, and other oil producers at a meeting last weekend agreed to extend their record oil production cuts of 9.7 million barrels per day by another month, which means that the cuts will now last until the end of July 2020. It is expected that these cuts will tighten the market further.
The deal was initially set to expire on 30 June. The cuts, which make about 10 per cent of global output, will not only balance the global crude and condensate demand but are deep enough to create a monthly deficit starting from June 2020 and continuing uninterrupted until at least the end of next year, a Rystad Energy analysis shows.