Following a conference of major producers aimed at supporting prices despite concerns of a recession, Riyadh on Sunday announced a further reduction in oil supply.
The Organization of the Petroleum Exporting Countries (OPEC), which has 13 members, met with its 10 partners, chaired by Russia, and Saudi Arabia as its representative.
After the lengthy OPEC+ meeting at the group’s headquarters in Vienna, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman informed reporters that the country’s new cut of one million barrels per day (bpd) is for July but “extendable.”
Analysts had mostly anticipated OPEC+ producers to stick with their existing course of action, but this past weekend there were indications that the 23 nations were considering even deeper cutbacks.
A number of OPEC+ countries unexpectedly agreed to decrease production by more than one million bpd in April. Although this unexpected action temporarily supported prices, it did not result in a long-lasting rebound.
