Oil prices fell on Monday after OPEC agreed to extend voluntary production cuts until the second quarter, OPEC announced on Sunday that the voluntary production cuts of 2.2 million barrels per day that were planned for the first quarter of this year will continue in the next quarter, in an attempt to support the stability of crude oil markets in the short term.
With the beginning of the week's trading on Monday, oil prices fell, as the world record Brent crude fell to levels of 83.30 dollars per barrel, while the trading of futures contracts for West Texas Intermediate US crude fell to 79.30 dollars per barrel.
Saudi Arabia announced that it will extend its voluntary reduction by one million barrels per day until the end of the second quarter, the Saudi Press Agency reported, bringing its crude production to about 9 million barrels per day until the end of June.
Russia will also reduce its production and export supplies by a total of 471 thousand barrels per day until the end of June, other major producers such as Iraq and the United Arab Emirates will also extend their voluntary production cuts by 220 thousand barrels per day and 163 thousand barrels per day, respectively, until the end of the second quarter.
This step on the part of OPEC indicates the strong unity within the group, which came into question after the ministerial meeting in November, which saw Angola withdraw from OPEC.
And the declines that have now occurred in oil prices despite these cuts by OPEC may indicate as a sign that the prospects for demand in the second quarter are less optimistic than the group thought in November last year.
