The OPEC+ has agreed to relax crude oil production cuts by 500 kb/d, from 7.7 mb/d to 7.2 mb/d as of January 2021. In addition, the group decided to hold monthly OPEC and non-OPEC ministerial meetings starting January 2021 to assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments being no more than 500 kb/d.
In April 2020, the OPEC+ decided 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 in a context of COVID-19 pandemic. The production cuts were 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 were then relaxed to 7.7 mb/d from 1 August 2020 (delayed from 1 July 2020 in June 2020) to 31 December 2020. and were expected to be relaxed further to 5.8 mb/d from 1 January 2021 to 30 April 2022. However, renewed lockdowns due to COVID-19 containment measures continue to affect the global economy and oil demand recovery, prompting the OPEC+ to relax production cuts on a lesser extent.
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