We welcome any news that brings stability to global oil markets: Canada's Natural Resources Minister on oil deal

Canada's Natural Resources Minister Seamus O'Regan says Canada welcomes the new OPEC+ oil production cut deal and hopes that it will stabilize the markets.

"This is good. We welcome any news that brings stability to global oil markets. The federal Government is deeply concerned about oil price instability and the impact on thousands of workers in Canada's energy sector, and their families," O'Regan wrote on Twitter.

OPEC+ oil producers reached a new agreement on Sunday to collectively reduce oil production by 9.7 million barrels a day for two months, starting from May 1. After that, production will be cut by 7.7 million barrels a day for 6 months, until December 31. Starting from January of next year until April 2022 oil production will be reduced by 5.8 million barrels per day.

According to a final communique released after the Sunday agreement, a possible extension of the new OPEC+ deal will be discussed in December 2021. A meeting will also be held this June via videoconference to see if any further actions are needed to balance the market amid the coronavirus pandemic.

A source in one of the OPEC+ delegations told Sputnik that the collective commitment on production cuts starting from May 1 was about 19 million barrels a day and included OPEC+ countries and members of the International Energy Agency (IEA) such as the United States, Canada and Mexico.

Canada is the fourth largest producer and fourth largest exporter of oil in the world - in February, the country was extracting some 4.9 million barrels of oil per day. (Sputnik/)

( With inputs from ANI )

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