On Thursday OPEC has decided to control the existing output cuts beginning next month. In the month of May an additional 350,000 barrels per day will be added to production, with another 350,000 coming on the market in June. The July output will be increased by 450,000 barrels per day.The OPEC alliance is currently cutting by just over 7 million barrels per day in an attempt to prop up prices and reduce oversupply. OPEC kingpin Saudi Arabia has added an additional 1 million barrels per day to those cuts. The voluntary output cuts will begin in may said Saudi Arabia.
The coronavirus crisis continues to cloud the demand outlook and analysts expect this to reaffirm Saudi Arabia’s caution about the global economic recovery. Analysts noted the global oil market and found that there is a significant level of volatility. Brent crude futures dropped to $62 a barrel from $70, before stabilizing around $64 in recent days.
U.S. Energy Secretary Jennifer Granholm tweeted on Thursday that she contacted the audi Arabia’s Energy Minister Prince Abdulaziz bin Salman to reaffirm the importance of international cooperation to ensure affordable and reliable sources of energy for consumers. The petroleum organisation has agreed to cut oil production by a record of 9.7 million barrels per day last year, before easing cuts to 7.7 million and eventually 7.2 million from January.