OPEC+ Meetings On Future Of Oil Production Cuts To Start On Tuesday

MOSCOW (UrduPoint News / Sputnik - 14th July, 2020) The future of the deep oil production cuts will be discussed at the OPEC+ Joint Technical Committee (JTC), which will be held on Tuesday and will be followed by the Ministerial Monitoring Committee (JMMC) on Wednesday.

Under the April 12 agreement, the OPEC+ oil producers agreed to collectively reduce oil production by 9.7 million bpd for two months starting on May 1. The deal stipulated that production would be cut by 7.7 million bpd for 6 months starting in July. In June, OPEC+ countries decided to extend the deep cuts of 9.7 mbd into July to further stabilize the market.

This week, the oil producers should decide whether to extend the deep cuts or ease the quotas. A source in one of the OPEC+ delegations has told Sputnik that Saudi Arabia conducts negotiations on the possible downplay of oil production cut in August to 7.7 million bpd, but consensus is yet to be reached.

In anticipation of the OPEC+ meetings, oil prices dipped slightly on Monday. The price of September futures for Brent Crude decreased by 0.16 percent to $43.17 per barrel, while August futures for WTI fell in price by 0.05 percent to $40.52 per barrel.