Opec (Organization of Petroleum Exporting Countries) and its Russian-led allies (OPEC+) reached an agreement in April to cut production of the commodity by 9.7 million barrels per day (bpd) in May and June. However, sources from the group told Reuters last Tuesday (13), that the organization wants to keep the current cuts even after June.
"Ministers want to keep after June the same production cuts now, which are about 10 million bpd. They don't want to reduce the size of the cuts. That's the basic scenario that's being discussed right now," the sources said.
The next OPEC+ meeting to define production policy takes place in early June. A source familiar with Russia's thoughts said the country does not rule out an extension of the cuts but "this will depend on the market situation."
On Wednesday (13), the group added in its monthly report that record supply cuts promoted in conjunction with other producers are already helping to rebalance the market.