OPEC news

Oil prices fall as enthusiasm for a possible OPEC+ agreement to continue June’s production cuts for more months subsides.

Oil prices got a boost this morning on rumours that the coming OPEC+ meeting may keep high-level production cuts after June.

OPEC+ producers are considering extending their output cut of 9.7 million bpd, about 10% of global production, into July or August, at an online meeting likely to be held on 4 June.

From June, Saudi Arabia is cutting an extra 1 million bpd, the UAE an extra 100 000 bpd, and Kuwait an extra 80 000 bpd.

Oil prices stopped rising on Wednesday as the market started realising that crude storages continue to fill, after days of prolonged gains.

Oil prices fell on Monday, despite the OPEC+ cuts.

Rystad has warned however that stock build will still overwhelm remaining global storage, which will fill in weeks.

Following OPEC+'s agreement to cut oil production by 9.7 million bpd from 1 May 2020, Azerbaijan has announced the commitments it will take as a member.

Kazakhstan has pledged to cut its output by 390 000 bpd in May and June.

Nigeria’s state oil company has delayed publishing its future oil export plans as it negotiates with local companies and international majors about how to cut output.