Saudi Arabia and Russia have agreed to extend the existing oil cuts by another month and intend to ramp up pressure on non-compliant oil producing nations, according to Reuters.
Instead of easing off the record oil cuts of 9.7 million barrels per day (mmbbl/d) in May and June, OPEC and its allies are expected to extend the cuts for July to aid oil price recovery.
“Saudi Arabia and Russia are aligned on the extension for one month,” one OPEC source told Reuters. “Any agreement on extending the cuts is conditional on countries who have not fully complied in May deepening their cuts in upcoming months to offset their overproduction.”
OPEC members such as Iraq and Nigeria have shown weak compliance figures so far. Meanwhile, Saudi Arabia, Kuwait, and the UAE are not discussing extending their additional voluntary cuts to production of 1.18 mmbbl/d beyond June. OPEC group is due to have an online meeting on June 4 to discuss output policy.
Oil prices have risen recently due to the constant recovery of the Chinese economy.