The Organization of the Petroleum Exporting Countries (OPEC) and a non-OPEC technical panel have recommended extending a current agreement to reduce oil supply until the end of 2020 in response to the coronavirus.
The announcement was made by HE Mohamed Arkab, The Minister of Energy of Algeria and President of the OPEC Conference in 2020, following an extraordinary meeting of the Joint Technical Committee (JTC) held in Vienna.
The JTC recommended extending voluntary production adjustments under the ‘Declaration of Cooperation’ process until the end of 2020 and to proceed with an additional adjustment until the end of the second quarter.
The JTC’s recommendations come in response to the fact that the coronavirus epidemic "has had a negative impact on oil demand and oil markets," the President of the Conference said.
"The coronavirus epidemic is having a negative impact on economic activities, particularly on the transportation, tourism and industry sectors, particularly in China, and also increasingly in the Asian region and gradually in the world," he added.
In response, the JTC has recommended extending the current production adjustments until the end of 2020.
The Committee also recommended a further adjustment in production until the end of the second quarter of 2020. The Minister stressed that he "supports the conclusions of the JTC."