Some OPEC+ members agree to extend voluntary cuts to Q2 - sources

Some members of OPEC and allies led by Russia (OPEC+) have agreed to extend voluntary first-quarter oil output cuts into the second quarter, 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.

Some members of OPEC and allies led by Russia (OPEC+) have agreed to extend voluntary first-quarter oil output cuts into the second quarter, 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 futures for May settled $1.64 higher, or 2%, at $83.55 a barrel on Friday. Sources told Reuters last week 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.