OPEC and its allies, known as OPEC + , agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis .
They decided to cut supply by a record 9 .7 million bpd for May and June but the deal was extended in July by one month .
The cuts were later scaled back to 7 .7 million bpd from August through the end of the year.
OPEC said on Monday that the effect of the COVID – 19 outbreak on economic growth had significantly impacted oil demand growth in the first half of 2020 .
The group said world oil demand would fall more steeply in 2020 than previously forecast due to the pandemic and recover more slowly than expected next year, potentially making it harder for OPEC + to support the market .
It said in the report that this had led to a projected global oil demand decline of 9 .5 million bpd for 2020 , more than the 9 . 06 million bpd decline expected a month ago .
“ The impact of COVID – 19 related developments on an already fragile global economic conditions remain challenging and will require coordinated global policy action from all market participants ,” the group added .
Oil prices had collapsed as the COVID – 19 crisis had curtailed travel and economic activity .