New York, July 16:
Ministers from the OPEC cartel have agreed to allow more oil to flow from the taps, saying demand for oil is growing as economies take steps to reopen.
But they also cautioned that they could revisit the decision in an emergency meeting if there are serious lockdowns that further reduce demand for oil.
The OPEC nations and their allies will cut production by at least 7.7 million barrels per day in August, essentially putting about 2 million more barrels per day on the market than they did in July, analysts said.
Together, the oil-producing nations had agreed to cut production by nearly 10 million barrels per day, which amounts to about 10% of global oil supply, through the end of July.
Oil demand has bounced back from the lows that saw daily drops of more than 20 million barrels per day in April, but it is still expected to witness an annual drop of 8.9 million barrels per day for the whole of 2020, said Mohammad Sanusi Barkindo, secretary general of OPEC, during the meeting.