Those cuts were due to taper to 7.7 million bpd from July to December. 1 billion barrels of excess oil inventoriesThe April deal was agreed under pressure from U.S. President Donald Trump, who wants to avoid U.S. oil industry bankruptcies. While oil prices have partially recovered, they are still well below the costs of most U.S. shale producers. Tonhaugen said Saturday's decisions would help OPEC reduce inventories at a rate of 3 million to 4 million bpd over July-August. The next JMMC meeting is scheduled for June 18, while the next full OPEC and OPEC+ meeting will take place on Nov. 30-Dec. 1.

Source: CBC News June 06, 2020 17:37 UTC