OPEC
OPEC is discussing continuing the 2.2 million barrels per day voluntary cut through year end, according to three sources cited by Reuters.
Oil prices are perking up on the report.
Extending through year end is one option, with another option extending the cuts through Q3. Two sources also said they wouldn't rule out a deeper cut or releasing oil back into the market if demand rises.
OPEC is currently holding back 5.86 mbpd, including a 2.2 mbpd voluntary cut. Even if US producers stay disciplined, it could take years for global demand to soak up that supply.
Keep in mind, that Saudi Arabia is offering shares in Aramco at the moment so Saudi Arabia may have an incentive to keep markets tight for now.
