Some Opec+ members agree to extend voluntary cuts to Q2: sources

SOME members of the Organization of the Petroleum Exporting Countries and allies led by Russia (Opec+) have agreed to extend voluntary first-quarter oil output cuts into the second quarter, sources said on Sunday (Mar 3).

Opec+ in November agreed to voluntary cuts totalling about 2.2 million barrels per day (bpd) for the first quarter, led by Saudi Arabia rolling over its own voluntary cut.

Opec+ has implemented a series of output cuts since late 2022 to support the market amid rising output from the United States and other non-member producers and worries over demand as major economies grapple with high interest rates.

Oil prices have found support from rising geopolitical tensions due to attacks by the Iran-aligned Houthi group on Red Sea shipping, although concern about economic growth and high interest rates has weighed. Brent futures for May settled US$1.64 higher, or 2 per cent, at US$83.55 a barrel on Friday.

Sources told Reuters last week that Opec+ would consider extending oil output cuts into the second quarter, with one saying it was “likely”.

Opec+ member countries announce the cuts individually. Kuwait said it would cut its oil output by 135,000 barrels a day (bpd) through June, while Algeria will cut its output by 51,000 bpd. REUTERS