OPEC: Gulf countries won’t continue extended oil output cuts

Gulf countries will not continue a reduction of oil output by an extra 1.18 million barrels per day (bpd) in July as part of an agreement made by the Petroleum Exporting Countries (OPEC), Russia and other producers – a group known as OPEC+.

The two groups agreed in April to cut oil supply by 9.7 million bpd in May and June. On Saturday, they said they would sustain those cuts through July.

An OPEC source yesterday told Reuters that the extension would not include “additional voluntary cuts by trio Gulf producers, Saudi Arabia, the United Arab Emirates (UAE) and Kuwait.”

In addition, Mexican Energy Minister, Rossio Nali, said on Sunday his country would not extend oil production cuts until the end of July.

Low prices were reported to have prompted Chinese buyers to boost imports, with purchases by the world’s largest crude importer hitting a record high of 11.3 million bpd in May.

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