The 23 oil producing countries have to decide on production from July. In April, it was agreed to pump up about 10 million barrels less per day in May and June. That is roughly equivalent to 10 percent of global oil extraction. From July, the production restriction should weaken to 8 million barrels per day until the end of the year. The question is whether that is enough to continue to support the oil price, given how hard the global economy is hit by the corona crisis.
OPEC reportedly plans to extend the current production cut of 10 million barrels per day by three months from July. That can be problematic for some countries. Nigeria and the state oil company of the United Arab Emirates, for example, announced that they would pump more oil from July.
Current production constraints, along with the pick-up in oil demand from China, have pushed oil prices to $ 35 a barrel in recent weeks.
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