The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, Thursday resolved to gradually ease its oil output cuts from May till July.

The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, Thursday resolved to gradually ease its oil output cuts from May till July.

Sources said OPEC, which has been implementing deep cuts since oil prices collapsed in 2020 due to the COVID-19 pandemic, agreed to ease production cuts by 350,000 barrels per day in May, another 350,000bpd in June and a further 400, 000 to 450,000bpd in July.

Saudi Arabia is also expected to ease up on its own voluntary cuts of one million bpd, which it has been implementing in addition to reductions under the OPEC+ deal by 250,000bpd, 350,000bpd and 400,000bpd respectively.

Under Thursday’s deal, oil cuts implemented by OPEC+ would be just above 6.5 million bpd from May, compared with existing curbs of slightly below seven million bpd in April.

Brent crude, which slipped on news of the deal, was still trading above $64 a barrel Thursday, more than 20 per cent up on the start of the year but the price was still lower than this year’s high of about $71.

A statement by the cartel after the 15th meeting of ministers said OPEC emphasised the ongoing positive contributions of the Declaration of Cooperation in supporting a rebalancing of the global oil market.