On Monday, oil prices slightly increased as members of OPEC+ decided to prolong their voluntary oil output reductions to the end of the second quarter, and Russia committed to reducing exports and production.
With concerns about the state of the world economy and increased output from outside the organization, OPEC+ has decided to prolong its voluntary oil output cutbacks of 2.2 MBPD into the second quarter. This move is expected to provide market stability.
Russia, in cooperation with a few OPEC+ members, will reduce its oil production and exports by an additional 471,000 barrels per day during the second quarter.
In contrast to an earlier prediction that output might increase over 36 million bpd in May as producers unwind supply restrictions, the OPEC+ cuts would result in a lower production from the group in the second quarter, at 34.6 million bpd.
