OPEC agrees to extend output cut till March 2020

The Organization of the Petroleum Exporting Countries (OPEC) agreed here on Monday to extend the output cut till the end of March 2020.

Journalists wait at the beginning of an OPEC meeting in Vienna, Austria, July 1, 2019. [Photo: VCG/Leonhard Foeger]

"In view of the current fundamentals and the consensus view on the outlook for the remainder of 2019, the Conference decided to extend the voluntary production adjustments agreed at the 175th Meeting of the OPEC Conference for an additional period of nine months from 01 July 2019 to 31 March 2020", OPEC said in a press release after its 176th meeting.

It was observed that the oil demand growth for 2019 has been revised down to 1.14 million barrels a day (mb/d), while non-OPEC supply in 2019 is expected to grow at a robust pace of 2.14 mb/d year-on-year, said the statement.

The Conference also acknowledged the crucial role played by participating non-OPEC countries and stressed the significance of the 6th OPEC and Non-OPEC Ministerial Meeting slated for Tuesday.

Speaking at a press conference, Saudi Energy Minister Khalid al-Falih said that OPEC and its allies "enthusiastically came together" to support a charter to formalize their alliance.

Meanwhile, the Conference renewed the term of the office of Mohammad Sanusi Barkindo, former CEO of Nigerian National Petroleum, as secretary general for a further period of three years, which will take effect from August 1, 2019.

It was also decided that the next Ordinary Meeting of OPEC will convene here on December 5, 2019.