According to reports, OPEC+ countries led by Saudi Arabia and Russia decided to extend their voluntary oil output cuts into the second quarter. This decision provided additional market support amidst worries about the expansion of the world economy. The Organization of the Petroleum Exporting Countries (OPEC) de facto head, Saudi Arabia, said that it will prolong its voluntary production reduction of one million barrels per day (bpd) until the end of June, leaving it at about nine million bpd.
According to market conditions, the cuts will be gradually restored, the state news agency SPA said. Russian Deputy Prime Minister Alexander Novak announced that, in cooperation with a few OPEC+ members, Russia, the leader of the OPEC+ alliance, will reduce oil production and exports by an extra 471,000 barrels per day in the second quarter. Leading the way with Saudi Arabia carrying over its own voluntary cut, OPEC+ decided in November to implement voluntary cuts of around 2.2 million bpd for the first quarter.
Each OPEC+ member states the cutbacks separately. According to independent comments from the three OPEC producers, Iraq will continue to reduce its output by 220,000 barrels per day, the UAE by 163,000 barrels per day, and Kuwait by 135,000 barrels per day. Oman would reduce by 42,000 bpd, and Algeria would reduce by 51,000 bpd.
