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OPEC+ countries discussing oil production cuts from May to end of July, say sources

MOSCOW, April 7. /TASS/. OPEC+ countries are discussing production cuts within the new deal framework from May to the end of July 2020 at the least, two sources in OPEC told TASS on Tuesday.

"Three months. I believe the deal can be made from May because April deliveries have already been scheduled," a high-ranking source in the organization said. No clear deadline has been set so far "but it will be definitely longer than until June," another source added.

The OPEC+ oil production reduction deal ended on March 31, 2020. The reason was disagreements between Russia and Saudi Arabia on terms of its extension after March. The withdrawal from the agreement became the cause for production growth in OPEC countries, coupled with the unprecedented demand drop because of the coronavirus pandemic. The oil prices fell to $22 per barrel due to a combination of these factors for the first time in twenty years. The partners decided to resume consultations and involve other producers from G20 countries in joint actions. Negotiations will be held on April 9 in a videoconference format.