Can we expect further cuts from OPEC+ ?

OPEC and Russia-OPEC + are discussing extending the current mining cuts by one to two months. Informal OPEC leader Saudi Arabia does not expect the agreed measure to be released in July but extends it until the end of the year. However, according to these sources, Riyadh has so far failed to win over Russia. Moscow, which would like to release the measures gradually, is reluctant to extend them until the end of the year.

OPEC and its allies, including Russia’s association in the OPEC + group in April on a record reduction in oil production. In May and June, the leading producer countries will produce 9.7 million barrels less per day – about ten per cent of global production – to increase prices, which have fallen sharply due to declining demand caused by measures to curb the spread of coronavirus.

Oil prices are now around $ 35 a barrel and are about half the year-on-year. OPEC + member states are expected to discuss mining policy at an online meeting on 4 June.

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