OPEC and non OPEC oil producing countries have agreed to reduce production to 7.7 million barrels per day from August, according to a statement issued by the organization of Petroleum Exporting Countries (OPEC) in Riyadh, Xinhua news agency, on the 15th. The Joint Ministerial Supervision Committee of OPEC and non OPEC oil producing countries held a video conference on the same day. The conference issued a statement saying that as countries around the world slowly recover from the new epidemic, the global economy shows signs of improvement, and will enter the second phase of the oil production reduction agreement from August, that is, the scale of production reduction will be reduced to 7.7 million barrels per day.

The statement said that both OPEC and non OPEC oil producing countries fully implement the quota reduction, which is not only fair, but also essential for the current efforts to achieve long-term stability of the oil market and restore the balance of supply and demand in the market.

The statement said that for countries that did not complete the previous quota reduction, the meeting asked them to submit plans to the OPEC Secretariat before the end of July on how to compensate for the production reduction gap.

Saudi Arabia’s energy minister, Abdel Aziz bin Salman, said at the meeting on the same day that the actual oil production reduction scale in August will exceed 7.7 million barrels per day due to compensation from countries that have not completed the production reduction quota in the first three months. He also said Saudi Arabia would not increase oil exports in August.

On April 12 this year, OPEC and non OPEC oil producing countries reached an agreement on reducing oil production. From May to June this year, the average scale of oil production reduction was 9.7 million barrels per day. From July to the end of the year, the scale of production reduction was reduced to 7.7 million barrels per day. On June 6, OPEC and non OPEC oil producing countries agreed to extend the scale of reducing crude oil production by 9.7 million barrels per day to the end of July.

The Joint Ministerial Supervision Committee of OPEC and non OPEC oil producing countries was established in 2016. Its main task is to coordinate the domestic oil production of OPEC and non OPEC countries and maintain the stability of international oil prices.