OPEC+ members are on the way to smoothing an agreement in extended current crude oil output cuts and are discussing an idea to extend the curbs on supply for another month or two. As per April agreement to cut daily output by 9.7 million barrels or an approximate of 10% global output, OPEC+ feels the need to extend the restrain in reason of lifting prices battered by plunging demand linked to the global pandemic lockdown. OPEC+ source said that the extension for another one or two month is in the proposal, but have not been finalised yet.
Another market sources voiced out that OPEC leader Saudi Arabia opted to not easing the output cuts in July, but was going to lead discussions on sustaining them until the end of the year. On the other hand, the motion is not yet having support from Russia, which believes the oil curbs could be eased gradually. Russian market sources mostly leaning on the option for a supply cut for another month, not half a year.
The meeting is likely to begin on June 4 after the OPEC+ presidency Algeria proposed the June 9-10 meeting schedule to be commenced earlier. The production cut from OPEC+ producers combined with a number of declining output from non-members such as the United States and Canada have helped oil prices to reach $35/barrel, but this level is only half of the price level at the start of the year.
