The decision taken in the 10th extraordinary OPEC and non-OPEC Ministerial Meeting held via videoconference
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies on April 12 agreed to a deal cutting oil production by 9.7 million barrels per day (bpd) which is around 10% of the global supply. The global oil demand has fallen due to the lockdowns and subsequent shutting of economies around the world. This is the largest cut in oil production ever agreed by the countries.
The 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting was held via videoconference, on 12 April 2020, under the Chairmanship of HRH Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy, and co-Chair HE Alexander Novak, Minister of Energy of the Russian Federation.
The OPEC Secretary General HE Mohammad Sanusi Barkindo said, “It was historic conference in many aspects. Extraordinary times caused by COVID-19, leading to the slump in the global economy and oil demand, required prompt and decisive response by the OPEC and non-OPEC Declaration of Cooperation (DoC) partners.”
OPEC+ is a group of 24 oil-producing nations, made up of the 14 members of the OPEC, and 10 other non-OPEC members.
This deal put an end to the oil price war among the oil-producing countries. The Brent Crude, the benchmark for global oil prices, had plummeted to $24.74 on April 1.
