OPEC and its allies agreed on Thursday to further cut oil production by 500,000 barrels per day (bpd) effective as of Jan. 1, 2020 until March 2020, Reuters reported.
The output cut includes 340,000 bpd cut by OPEC and 160,000 bpd reductions by non-OPEC producers.
The step implies that OPEC+ group reduces production by 1.7 million bpd (mbpd) from the global oil market, instead of 1.2 mbpd in the current agreement.
The group also expected 2020 global economic growth to average 3%, while it forecast oil demand to grow by 1.1 mbpd.
The group will meet again in early March to decide the next move.
Oil prices rose more than 1% on Friday and posted sharp weekly gains after OPEC and its allies agreed to deepen output cuts.
In a related development, Saudi Arabia denied pursuing a deeper round of production cuts.
Be the first to comment