Four sources from the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) said that the group will probably ease the crude output cuts starting August as the global demand has been recovering and prices have bounced back from the lows.
OPEC+ is extending the record 9.7 million bpd oil output in July to balance the market. So far, according to the sources, no negotiations have occurred regarding extending the cuts into August.
It means the group will possibly ease the cut to 7.7 million bpd next month until December.
One source said that a further extension is not likely if there is no other downgrade in demand.
At the moment, oil prices have revived to around USD41/barrel, from April’s 21-year low below USD16/barrel as a result of OPEC+ supply cuts and recovering demand in reaction to coronavirus-related lockdown’s easings.
Previously, Russian Energy Minister Alexander Novak expressed Moscow’s content with the current oil price.
