OPEC, Russia and its allies have agreed to extend oil production cuts until the end of July, in order to firm up the price of crude oil. They’ve doubled over the past two months after a brutal collapse following the withdrawal of 10 percent of global supply from the market. The group, known as OPEC+, initially agreed to cut supply by 9.7 million barrels per day from May to June after they plummeted in the wake of the coronavirus crisis. But the cuts were intended to be gradually brought down to just 7.7 million bpd from July to December. Saudi Arabia and Russia are trying to push prices higher, but not above the $50 per barrel range, which is where American shale oil production becomes profitable.
