OPEC+ members agree to extend voluntary cuts to Q2

OPEC and allies led by Russia (OPEC+) have agreed to extend voluntary first-quarter oil output cuts into the second, sources said on Sunday.

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 crude LCOc1 was trading near $83 a barrel on Tuesday.

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