Some of the world’s powerful oil producers’ group, known as OPEC+, decided to curb the existing output cuts starting May gradually.
According to the group, 350,000 more barrels will be added, while another 350,000 is expected to hit the markets in June. Moreover, starting from July, the production will be increased by 450,000 barrels per day.
Currently, the OPEC+ group is cutting more than 7 million barrels per day to stabilize the oil prices and reduce oversupply. In May, Saudi Arabia voluntarily will add one more million barrels per day to those cuts.
The alliance’s decision came after the Suez Canal reopened to traffic and the ongoing COVID-19 crisis still threatens the demand outlook, with multiple countries imposing lockdowns again to curb the infection.
Oil prices fluctuated during the past weeks, swinging between $62 per barrel to $70. It managed to stabilize at around $64 a barrel.
Following the OPEC+ meeting, Brent oil traded at $65.08 per barrel, while Crude oil was at $61.63 a barrel.