The Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC allies led by Russia - the so-called OPEC+ - have decided to extend oil production cuts until the end of July 2020. In addition, according to the terms of the deal, countries which exceeded production quotas in May and June 2020, such as Iraq and Nigeria, must implement extra reductions over the July-September 2020 period.
In April 2020, the OPEC+ agreed to cut their overall crude oil production by 9.7 mb/d over the 1 May 2020 - 30 June 2020 period, in an attempt to reduce the global oversupply and to firm up depressed oil prices. The production cuts would be calculated on the basis of the October 2018 production level, except for Saudi Arabia and Russia that have a baseline level of 11 mb/d. Production cuts would then be relaxed to 7.7 mb/d from 1 July 2020 to 31 December 2020 and to 5.8 mb/d from 1 January 2021 to 30 April 2022. The potential extension of the agreement beyond April 2022 will be reviewed in December 2021.