Oil producers have agreed a further cut in production of nearly 10 million barrels a day through to the end of July.
Opec and its allied nations, now referred to as OPEC+ including Russia, hope the move will boost energy prices hit by the coronavirus pandemic.
The measure was adopted by the cartel meeting via video conference.It represents some 10% of the world’s overall supply.
Oil ministers shared their alarm at the plunge in prices in April but believe there are signs that the worst is over.
Crude oil prices have been gaining in recent days in anticipation at the cut. International benchmark Brent crude traded on Saturday over $42 a barrel from 20 dollars a barrel in April.
The price fall was initiated by a price war between Saudi Arabia and Russia. The coronavirus brought global travel largely to a halt, depressing demand for oil.
Under a deal reached in April, Opec and allied countries said they would cut 10 million barrels per day until July, then eight million barrels per day through the end of the year, and six million a day for 16 months beginning in 2021.
Meanwhile, the Minister of State for Petroleum Resources, Timipre Sylva has assured that Nigeria has been complying with the quota and would 100 per cent comply to ensure oil market rebound, this is as the cartel yesterday stressed on the need for countries like Nigeria, Iraq and others to fully comply with cut.
OPEC+ had in April agreed on cutting supply by 9.7 million barrels per day (bpd) during May-June. It will cut 7.7 million bpd from July to December.