Major oil producers to meet Saturday about output cuts

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Major oil producers to meet Saturday about output cuts

Vienna,(AFP/APP):Top oil producing countries will meet via video conference on Saturday instead of next week, a source close to OPEC said Friday, to assess their current agreement on output cuts, as oil prices recovered somewhat on easing coronavirus lockdowns.

                  OPEC's 13 members led by Saudi Arabia, and their 10 allies that include Russia, had originally been due to meet June 9 and 10.

                  But Algeria, which currently chairs the Vienna-based organisation, proposed a change of date intended, according to analysts, to better synchronise the decisions of oil producers with the timing of transactions on the oil market.

                  Friday's news boosted oil prices as producers appeared to move towards agreement on extending their huge output cuts, which are aimed at soaking up surplus crude.

                  The countries are discussing a deal agreed in April to cut output aimed at boosting oil prices, which have plummeted due to falling demand as countries around the world have imposed strict lockdowns to stop the spread of the new coronavirus.

                  OPEC and the so-called OPEC+ have pledged to cut output by 9.7 million barrels per day (mbd) from May 1 until the end of June.

                  Under the terms of the agreement, the historic cuts would be gradually relaxed from July with 7.7 mbd taken off the market from July to December.

                  OPEC and OPEC+ are set to discuss extending the 9.7 mbd beyond June though agreement could be difficult to reach.

                  April's deal was signed after days of wrangling between major players, whose revenues have been ravaged by the collapsing oil market this year