OPEC+ will consider extending voluntary oil output cuts into the second quarter of 2024 to provide additional support to the market, three sources in the alliance told Reuters, with two of them saying the alliance may keep the cuts until the end of the year.
OPEC and its allies agreed in November to voluntary cuts totaling about 2.2 million barrels per day during the first quarter of this year, which included Saudi Arabia extending its voluntary production cut.
Oil prices have been supported this year by rising geopolitical tensions over attacks by Yemen's Houthi movement on commercial ships in the Red Sea.
Brent crude was trading near $83 a barrel on Tuesday.
An OPEC+ source, speaking on condition of anonymity, told Reuters that extending production cuts into the second quarter was likely.
Two of them said that an extension for a longer period until the end of the year is possible.
Under the current agreement, total production cuts are set to reach 3.66 million barrels per day starting in early April.
Saudi Arabia said the cuts could continue beyond the first quarter if necessary.
Two of the sources said OPEC+ has not formally discussed the matter yet.
Sources say a decision on extending the cuts is expected to be taken in the first week of next March, and that each country will announce its decision individually.
OPEC+ has implemented a series of production cuts since late 2022 to support the market amid rising output from the United States and other non-member producers, concerns about demand, and as major economies face a crisis of rising interest rates and seek to curb inflation.
