Major Oil Producers To Meet On Saturday Over Output Cuts

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Top oil-producing countries are billed to meet on Saturday via video conference instead of next week, and OPEC source informed on Friday. This is to assess their current agreement on output cuts amid the coronavirus crisis. OPEC's 13 members led Saudi Arabia and their allies, including Russia, had originally been due to meet on June 9 and 10. But Algeria which currently chairs the Vienna-based organisation proposed a change of date intended to better synchronise the decisions of oil producers with the timing of transactions on the oil market. 

The countries are discussing a deal agreed in April after days of wrangling between major players to cut output aimed at boosting oil prices which have plummeted due to falling demand as countries around the world have imposed strict lockdowns to stop the spread of the new coronavirus.

OPEC and OPEC+ members had pledged to cut outputs by 9.7 million barrels per day (mbd) from May 1 until the end of June. under the terms of the agreement, the historic cuts would be gradually relaxed from July with 7.7 mbd taken off the market from July to December.

OPEC and its Stakeholders are set to discuss extending the 9.7 mbd beyond June through the agreement could be difficult to reach.