OPEC+: Saudi Arabia slashes output further to boost oil price

OPEC+: Saudi Arabia slashes output further to boost oil price

Riyadh on Sunday announced a fresh oil output cut following a meeting of major producers aiming to prop up prices despite fears of a recession.

The meeting of the 13-member Organization of the Petroleum Exporting Countries (OPEC) headed by Saudi Arabia and its 10 partners, led by Russia, saw some tough negotiations.

Saudi Arabia's fresh cut of one million barrels per day (bpd) is for July but "extendable", its Energy Minister Prince Abdulaziz bin Salman told reporters after the hours-long OPEC+ meeting at the group's headquarters in Vienna.

Analysts had largely expected OPEC+ producers to maintain their current policy, but signs emerged this weekend that the 23 countries were mulling deeper cuts.

In April, several OPEC+ members agreed to cut production voluntarily by more than one million bpd -- a surprise move that briefly buttressed prices but failed to bring about lasting recovery.

- 'Everyone is happy' -

Oil producers are grappling with falling prices and high market volatility amid the Russian invasion of Ukraine, which has upended economies worldwide.

Oil prices have plummeted about 10 percent since the April cuts were announced, with Brent crude falling close to $70 a barrel, a level it has not traded below since December 2021.

Traders worry that demand will slump,