Opec Production Cuts Since August Have Fallen to 7.7 Million Barrels a Day

The Organization of Petroleum Exporting Countries (Opec) and non-OPEC producers have agreed to cut output to 7.7 million barrels per day (BPD) starting in August, the group said in a statement.

The Joint Ministerial Supervision Committee of Opec and non-OPEC producers held a video conference on the same day. "As the world slowly recovers from the coVID-19 outbreak and the global economy shows signs of improvement, the second phase of the agreement to reduce oil production to 7.7 million barrels per day will begin in August," the statement said.

"Full implementation of production cuts by both Opec and non-OPEC producers is not only fair, but also essential to the current efforts to achieve long-term stability and restore market supply and demand balance," the statement said.

Countries that have not met their quotas on previous cuts have been asked to submit plans to the Opec secretariat by the end of July on how to compensate for the shortfall, the statement said.

Saudi Arabia's energy minister, Abdelaziz bin Salman, told the conference that the actual production cut in August would be more than 7.7m b/d, as countries that failed to meet their quotas in the first three months would be compensated. He also said the kingdom would not increase oil exports in August.

Opec and non-OPEC producers reached an agreement on April 12 to cut production by 9.7 million barrels a day in May and June and 7.7 million barrels a day between July and the end of the year.

On June 6, Opec and non-OPEC producers agreed to extend production cuts of 9.7 million barrels a day until the end of July.

The Joint Ministerial Supervision Committee of Opec and non-OPEC oil producers was established in 2016. Its main task is to coordinate the output of Opec and non-OPEC oil producers and maintain the stability of international oil prices.