OPEC+ will extend current production levels through the second quarter, hoping to see the market tighten as summer driving season gets underway.
Saudi Arabia will extend its voluntary cut of 1 million bpd through the end of June as well with cuts to be reversed 'gradually', according to market conditions. Russia's Novak said cuts of 471k bpd will continue through Q2.
A report last week flagged a likely continuation of cuts through Q2 so it's not a big surprise. There was even some talk of extending them through year end, so the market may not cheer the move. It's also possible the decisions leaked on Friday as oil prices broke above $80 for the first time since November. WTI ultimately settled at $79.97.
