OPEC to Ease Production Cuts from August..."Demand Returning to Normal Levels"

[Image source=AP Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, is reportedly set to ease its production cut measures starting next month.

On the 11th (local time), the Wall Street Journal (WSJ) cited an OPEC official, reporting that "oil demand, which had decreased due to the novel coronavirus disease (COVID-19), appears to be recovering," and that oil production will increase from August.

Previously, OPEC agreed to cut production by 9.7 million barrels per day in May and June to mitigate the impact of COVID-19. As the spread in major countries did not subside, the cuts were extended through July. According to WSJ, with the easing of the production cuts, OPEC is expected to reduce the daily cut to around 7.7 million barrels.

This content was produced with the assistance of AI translation services.