OPEC+ eyes extension of oil production cuts
Driving the news: The OPEC+ group — which includes OPEC, Russia and allied producers — are eyeing an extension of the 9.7 million barrels per day production cut for one or two months, Reuters reported. Bloomberg notes it could be three.
- Right now the cutbacks are slated to begin easing at the end of June, dropping to 7.7 million for the rest of the year.
The big picture: The formal cuts in the agreement are part of a much larger global decline in response to the pandemic that caused demand and prices to crater.
- Demand has begun coming back and prices have rallied in recent weeks, but the market is still facing headwinds and lots of uncertainty.
What's next: The OPEC+ group's planned meeting next week could be moved up to this Thursday, per multiple reports.