OPEC, allies extend initial oil cuts by one month

OPEC, allies extend initial oil cuts by one month
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Members of the Organization of Petroleum Exporting Countries (OPEC) and others, collectively known as OPEC+,  agreed over the weekend to extend their initial phase of oil production cuts by one month. 

The countries on Saturday extended their May and June oil production cuts of nearly 10 million barrels per day until the end of July. 

As of Monday afternoon, U.S. crude oil prices fell by about a dollar from their opening price of more than $39. 

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The countries had first agreed to cut production in April as oil demand decreased amid the coronavirus and Saudi Arabia and Russia were engaging in a production standoff. 

On Saturday, U.S. Energy Secretary Dan Brouillette expressed support for the OPEC+ agreement.

“I applaud OPEC-plus for reaching an important agreement today which comes at a pivotal time as oil demand continues to recover and economies reopen around the world,” he tweeted.

Prior to extension, the group of countries, which does not include the U.S., was expected to lessen its production cuts to nearly 8 million barrels per day from July through December.