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OPEC+ agrees additional crude oil production cut, up to 1.7 mb/d

OPEC members and allied oil producers, the so-called OPEC+, have agreed to cut their crude oil production by an additional 500,000 bbl/d until their next meeting in early March 2020. This agreement leads to total adjustments of 1.7 mb/d. In addition, Saudi Arabia will continue its additional voluntary contribution of 400,000 bbl/d, leading to adjustments of more than 2.1 mb/d. Russia has agreed a 300,000 bbl/d quota during the first quarter of 2020, excluding gas condensate.

In December 2018, OPEC+ agreed to jointly reduce crude oil production by 1.2 mb/d, effective as of January 2019 for an initial period of six months, in an attempt to strengthen global oil prices. The production cuts are shared among OPEC countries (0.8 mb/d, Iran, Libya and Venezuela being exempted) and non-OPEC countries such as Russia (0.4 mb/d). Most of the actual reduction in OPEC's production comes from production losses in Iran and Venezuela. In July 2019, the parties decided to extend voluntary production adjustments for an additional period of nine months, from 1 July 2019 to 31 March 2020.