THE Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC ministerial meeting agreed Saturday to extend oil production cuts by one month until the end of July.

OPEC and allies agreed on extending the first phase of the oil production cut pertaining in May and June by one further month until the end of July, according to a statement released by OPEC after the virtual meeting.

The energy ministers agreed that the countries who exceeded oil production quotas in May and June would compensate with extra cuts in July, August and September, the statement added.

The meeting called upon all major oil producers to proportionally contribute to the stabilization of the oil market, taking into consideration the substantial effort made by the OPEC and non-OPEC participating countries.

The meeting underscored how the production adjustments in May, alongside the emergence of many economies from the lockdowns due to the COVID-19 pandemic, have helped garner tentative signs of a recovery in the global economy and the oil market.

OPEC+ previously agreed to cut supply by a record 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Cuts have been due to taper to 7.7 million bpd from July to December.

OPEC+ sources have said Saudi Arabia and Russia had agreed to extend record cuts throughout July although Riyadh would prefer to see cut extended throughout August.

Global benchmark Brent crude, which slumped below US$20 a barrel in April, rose nearly 6 percent Friday to trade at a three-month high above US$42.(SD-Agencies)