The Organisation of the Petroleum Exporting Countries and allies led by Russia, has reached a deal on output policy after seven hours of talks on Sunday, deciding to reduce overall production targets from 2024 by a further total of 1.4 million barrels per day.

Also, Saudi Arabia will make deep production cuts in July as part of a broader deal by OPEC+ to limit output.

Saudi Energy Minister Prince Abdulaziz said the cut of 1 million barrels per day (bpd) by Riyadh could be extended beyond July if needed.

The group lowered the targets for Russia, Nigeria and Angola to bring them into line with their actual current production levels.

However, the United Arab Emirates was allowed to raise output.

OPEC+ pumps around 40% of the world’s crude, meaning its policy decisions can have a major impact on oil prices.

OPEC+ already has in place a cut of 2 million bpd agreed last year and amounting to 2 percent of global demand.

Reuters/VON