Four sources said OPEC+ want to maintain existing oil cuts beyond June. Travel and economic activity have been curtailed by the Covid-19 pandemic, pushing global oil demand to slump by about 30 percent. Before the OPEC+ agreed its deepest oil cuts, Brent crude prices slumped 65.6 percent in Q1.
Output cut by 9.7 million barrel per day for May and June agreed by OPEC+ last month, marking a record reduction. Supply reductions will remain to April 2022 while producers will slowly relax curbs after June.
To decide on output policy, OPEC+ meets next in early June. From July to the end of the year, the group is set to scale back the cuts to 7.7 million barrel per day.
A surprise announcement made on Monday by Saudi Arabia. The kingdom said it would voluntarily deepen oil output cuts by 1 million bpd from June. Fresh cuts for June output by total 180,000 barrel per day also announced by Kuwait and the UAE. Oil prices rose on Tuesday after the announcement.
