OPEC+ considering extending oil cuts
It was stated that OPEC+, consisting of the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, will continue oil cuts if there is no demand.
OPEC+, formed by the Organization of Petroleum Exporting Countries (OPEC) and countries acting together, has not yet started official negotiations to extend the voluntary oil production cuts of 2.2 million barrels per day after June, but three sources from OPEC+ announced that they may continue the production cuts if demand does not recover.
OPEC+ has implemented a series of production cuts since late 2022 as production from the United States and other non-member producers increased. While OPEC did not comment on the issue, OPEC+ is expected to meet in Vienna on June 1 to determine the production policy.
The OPEC+ group is currently reducing production by 5.86 million barrels per day, meeting about 5.7 percent of global demand. Oil prices have been supported this year by conflicts in the Middle East, although concerns about economic growth and high interest rates prevail.
According to Reuters, a source with knowledge of the matter said that the cuts could be extended until the end of the year, while another said that a surprise jump in demand would be required for OPEC+ to make any changes.