The Organization of the Petroleum Exporting Countries – The OPEC – has agreed to extend the Oil Output Cut, till the end of March 2020.
After its 176th meeting, The OPEC said in a release, in view of the current fundamentals and the consensus view on the outlook for the remainder of 2019, the Conference has decided to extend the Voluntary Production Adjustments agreed upon at the 175th Meeting, for an additional period of nine months, from 1st July 2019 to 31st March 2020.
It was also observed that the oil demand growth for 2019 has been revised down to 1.14 million barrels a day, while non-OPEC supply in 2019 is expected to grow at a robust pace of 2.14 million barrels a day, year-on-year.
OPEC’s supply cuts were put in place on a temporary basis at the beginning of 2017, with the intention of stopping a dramatic multi-year slide in oil prices.
Since then, OPEC has opted to extend the cuts repeatedly.