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. 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. A Saudi oil source said on Tuesday OPEC+ had not taken any decision yet and discussions about policy had yet to start.
Published in The Express Tribune, March 31st, 2021.