OPEC and its allies will restore some oil supplies next month, but the impact will be barely felt as demand recovers from the coronavirus crisis, said Saudi Arabia's Energy Minister.
After almost three months of historic output curbs to offset the worst effects of the global pandemic, the 23-nation coalition led by Riyadh and Moscow will proceed with its plan to gradually taper the reductions. The decision was widely expected but still carries some risks for the cartel after a resurgence of the virus in the US.
The Organization of Petroleum Exporting Countries and its allies will withhold 7.7 million barrels a day from the market in August, compared with cuts of 9.6 million currently. The group's two largest members, Russian and Saudi Arabia, publicly backed the move, and other ministers participating in the video conference had agreed in principle, delegates said.
That supply increase will be offset somewhat by members that didn't fulfill their commitments to reduce output in May and June - such as Iraq and Nigeria. They will make up for those shortcomings with extra reductions in August and September.
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