Sam Meredith, Holly Ellyatt
The 14-member group, led by Saudi Arabia, decided Thursday to cut production by 1.5 million barrels per day (bpd), two unnamed sources told Reuters.
The deal — which was at the top end of analyst expectations — is believed to be conditional on approval from Russia.
A meeting of both OPEC and non-OPEC members, sometimes referred to as OPEC+, will take place on Friday.
Ahead of Thursday’s meeting, Russia’s appetite for deeper production cuts had been far from certain, with Moscow reportedly in favor of an extension
International benchmark Brent crude traded at $51.49 Thursday morning, up around 0.7%, while U.S. West Texas Intermediate (WTI) stood at $47.11, around 0.6% higher.
The gathering of some of the world’s most powerful oil-producing nations comes
OPEC focused on doing something ‘very dramatic’
He did not comment when asked specifically about the extent of further production cuts.
United Arab Emirates’ Minister of Energy and Industry Suhail al-Mazrouei also refused to speculate when asked whether OPEC+ would look to impose an additional cut of more than 1 million
“We’ve already seen Brent test $50 (per barrel) last week and I think people are expecting an OPEC action. I would say a million (
How did we get here?
In December 2019, it was extended and the alliance agreed to curb oil output by approximately 1.7 million barrels per day. Saudi Arabia then opted to cut its own production voluntarily by an additional 400,000 b/d for three months, should fellow members stick to their commitments.
In February, OPEC’s joint technical committee (JTC) reportedly recommended a 600,000
Russia said at the time that it had not yet decided whether to sign up to the additional cuts, however, and that position appears to have continued.