OPEC likely to extend output cuts for another month

OPEC and its allies led by Russia are “most likely” to agree on a one-month extension to an oil production cuts deal on Saturday, an OPEC delegate said, Report informs citing Reuters.

The delegate, who spoke on condition that he not be identified, said: “It is most likely that the meeting today will result in an extension of the agreement for one month only. This is the general trend within OPEC+.”

OPEC+ previously agreed to cut supply by a record 9.7 million barrels per day (BPD) during May-June to prop up prices that collapsed due to the coronavirus crisis. Cuts were due to taper to 7.7 million BPD from July to December.

OPEC+ sources have said Riyadh and Moscow agreed to extend existing cuts throughout July, although Riyadh was seeking a further extension to August and possibly even December.

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