Major oil producers have committed to comply with the restrictions until April 2022.
OPEC+, a group of countries that includes OPEC and other oil-producing states, including Russia, on Thursday agreed to cut production by 10 million barrels per day in May and June, to support prices that have fallen sharply amid the coronavirus pandemic.
The statement said that from July to December, oil production will be reduced by 8 million barrels per day, and from January 2021 to April 2022, the reduction will be 6 million barrels per day.
The next video conference of OPEC+ countries, during which participants will assess the state of the market, will be held on June 10.
Earlier, sources reported that OPEC+ discussed reducing production volumes by up to 20 million barrels per day, which is about 20 percent of the global volume. Even though in the end, the oil producers agreed to a reduction of 10 million, this reduction was the largest in history. During the 2008 financial crisis, OPEC members agreed to reduce oil production by 2.2 million barrels per day.
The US welcomes reports of an agreement to cut oil production between OPEC and other major oil powers, a senior Trump administration official told Reuters.
“These commitments serve as an important signal that all major oil-producing States will respond correctly to the market realities caused by the coronavirus pandemic,” the source said, adding that US Energy Secretary Dan Brouillette will represent the United States at a meeting of G20 energy Ministers on Friday. The meeting participants will discuss actions to restore the stability of the oil market.