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OPEC+ Can Soften The Deal By Reduction Of Oil Production

OPEC+ Can Soften The Deal By Reduction Of Oil Production

Saudi Arabia has offered to ease the quota for reducing oil production from 9.7 million to 7.7 million barrels, sources told Bloomberg and The Wall Street Journal (WSJ). A meeting of key representatives of OPEC and OPEC+ in the format of a videoconference is scheduled for July 15.

According to media reports, the easing of conditions for reducing production is due to the recovery of demand to the level that was before the restrictions on coronavirus. It is claimed that the majority of OPEC + participants support reducing the quota. A WSJ source said that determining may have a negative impact on OPEC.

OPEC+ countries agreed on the largest-ever production cut in April. They agreed to reduce production by 9.7 million barrels per day. The deal took effect in May. In June, the agreement was extended to July. In the latest report of the IEA Agency, it is noted that in June, OPEC+ countries fulfilled the deal to reduce production by 108%, including Saudi Arabia — by 138%, Russia — by 100%.