OPEC+ Extends Production Cuts Through July

OPEC+ Extends Production Cuts Through JulyOPEC+ Extends Production Cuts Through July

OPEC+ is set to extend production cuts to prop up the oil market after a breakthrough in high-stakes negotiations, and the organization could meet as soon as this weekend to sign off on the deal.
After almost a week of wrangling, OPEC+ leaders Russia and Saudi Arabia clinched a tentative deal with holdout member Iraq, according to a delegate. 
The pair were pushing Iraq to stop shirking its share of cuts and even to compensate for failure to comply with cuts in the past, Bloomberg reported.
The agreement-- to be ratified Saturday June 6 via webinar--means OPEC+ will extend its record production curbs for another month until the end of July. 
The 23-nation partnership between OPEC and other major producers has helped engineer a doubling in Brent prices since April. The oil price surge has revived the fortunes of major energy companies like Exxon Mobil and Royal Dutch Shell Plc, and reduced the fiscal hole in the budgets of oil-rich nations.
Failure to reach an agreement this month could have brought millions of barrels of oil onto the market, undermining a tentative recovery as the coronavirus lockdown eases. 
With US shale production starting to come back online, OPEC’s careful management of the demand recovery is crucial.

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