The OPEC+ group of oil producers has rescheduled its output policy meeting to June 2, opting for an online format instead of the initially planned in-person session in Vienna on June 1. This change was confirmed by OPEC on Friday.
OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies led by Russia, is currently implementing voluntary output cuts totaling about 2.2 million barrels per day for the first half of 2024.
These cuts are primarily driven by Saudi Arabia extending an earlier voluntary reduction. Additionally, the group has pledged cuts of 3.66 million bpd, set to continue until the end of 2024. Combined, these reductions amount to 5.86 million bpd, approximately 5.7% of daily global demand, according to Reuters.
Sources from countries involved in these voluntary cuts have indicated that an extension of the current reductions is likely. The OPEC+ cuts, initiated in late 2022, come amid increasing production from the United States and other non-member countries. Meanwhile, concerns over demand persist as major economies face high interest rates.
On Friday, Brent crude was down about 0.3%, trading at $81.14 per barrel, its lowest price since February. This follows a 2024 peak of $91.17 reached early last month.