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OPEC+ hold early meeting to discuss oil cuts extension
01 Jun 2020

Oil Cuts
OPEC+ is considering bringing their next meeting forward to June 4 and set to discuss a short extension of its current output cuts.

The cartel and its allies are considering prolonging the current cuts for one to three months as a short-term measure and not disrupt the rebalancing of the market.

The existing output cut deal which is due to energy demand and prices collapsed during the coronavirus pandemic, calls for output curbs to ease from July. However, that’s still up for discussion at the next meeting.

Although oil prices have rallied as the output cuts coincided with a stronger-than-expected rebound in demand, fears have been raised with lockdowns easing across the globe.

The date of the meeting, which will be held by video conference, was still to be confirmed late on Sunday, after people familiar with the situation said OPEC members were close to an agreement to brings it forward to June 4.

Production cuts are meant to be eased to about 7.7 million barrels a day in July.

OPEC members usually decide their plans for shipping oil to customers for July in the first week of June, therefore an earlier meeting would give them more flexibility to change their current production limits.

At the meeting, the 23-nation OPEC+ coalition led by Saudi Arabia and Russia will decide whether to keep the existing agreement or extend the current curbs.

 

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