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OPEC raises crude output cuts

OPEC raises crude output cuts

Mubasher: The extraordinary meeting of the Organization of the Petroleum Exporting Countries (OPEC) decided to extend output curbs for the remainder of the year, increasing production cuts by an additional 1.5 million barrels per day (b/d) until 30 June 2020.

The decision is yet to be approved by non-OPEC members that form an alliance with the international organization known as OPEC+.

The decision comes in view of the current fundamentals and the consensus on market perspectives, according to an official statement, noting that the outbreak of the new coronavirus (COVID-19) has had a major adverse impact on global economic and oil demand forecasts in 2020.

“Global oil demand growth in 2020 is now forecast to be 480,00 b/d, down from 1.1 million b/d in December 2019. Moreover, the unprecedented situation, and the ever-shifting market dynamics, means risks are skewed to the downside,” OPEC said in a statement on Thursday.

The conference noted that the further impact of the COVID-19 epidemic on oil market fundamentals requires continuous monitoring.