OPEC+ members extend oil output cuts to boost oil prices

The news: Organization of the Petroleum Exporting Countries plus (OPEC+) members will extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the June quarter, amid concerns over global production surplus and rising output outside the organisation.

The numbers: Saudi Arabia, the de facto leader of OPEC, said it will extend its voluntary cut of 1 million bpd until the end of June, leaving its output at approximately 9 million bpd.

Russia, which leads OPEC allies collectively known as OPEC+, said it will cut oil production and exports by an additional 471,000 bpd in the quarter.

The context: The extension, which was widely expected by traders and analysts, will support OPEC+ members to offset a seasonal reduction in world fuel consumption and heightened production from a number of their rivals, including the US. Concern about high interest rates and economic growth, particularly in China, has also weighed on oil prices.