#Saudi wants OPEC+ to extend oil cuts into June, source says | Reuters

Saudi wants OPEC+ to extend oil cuts into June, source says | Reuters

Saudi Arabia is prepared to support extending oil cuts by OPEC and its allies into June and is also ready to prolong its own voluntary cuts to boost prices amid a new wave of coronavirus lockdowns, a source briefed on the matter said on Monday.

After steady oil price gains earlier this year, OPEC and its allies, known as OPEC+, had hoped to ease output cuts.

But a fresh wave of lockdowns to prevent a new surge in the virus has pushed oil off this year’s highs, and four OPEC+ sources told Reuters this would most likely encourage the group to extend cuts into May when it meets on Thursday.

The source briefed on the matter said on Monday that Saudi Arabia was keen to extend cuts beyond May and into June.

“They don’t see demand as yet strong enough and want to prevent prices from falling,” the source said.