The Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, collectively referred to as OPEC+, have decided to gradually ease oil output cuts from May onwards, reports Hindustan Times.
The group's decision gains significance as it had been pursuing oil output cuts since the collapse of crude prices in the wake of the COVID-19 pandemic. The development reportedly came after the United States (US) administration talked to Saudi Arabian officials and pushed for keeping the energy prices affordable.
The OPEC+ has decided to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June and a further 400,000 bpd or so in July.
Saudi Arabia alone would gradually phase out its additional voluntary cut now running at 1 million bpd, by adding 250,000 bpd to production in May, another 350,000 bpd in June and then 400,000 bpd in July.
However, it should be noted that Saudi Energy Minister Prince Abdulaziz Bin Salman has asserted that the decision had not been influenced by any talks with the US officials.
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