Saudi Arabia and Russia find it necessary to extend the current agreement on output cuts for one more month. Nevertheless, the June OPEC+ meeting might be canceled since Iraq and Nigeria still have not reached the agreed targets on deepening their production. Due to the non-compliance of some OPEC members, the balance in the oil market could be disrupted again. That is why OPEC + leaders have issued an ultimatum to other members of the deal.

Oil prices immediately plunged to $40 per barrel. Unless the participants observe the terms of the deal, the production volume will increase by 2 million barrels per day in July. This will put more pressure on the energy market which has just begun to revive from the consequences of COVID-19.

The online conference is unlikely to take place tomorrow. If Iraq and Nigeria do not fulfill the requirements of the deal, the OPEC + meeting scheduled for June 9-10 might be cancelled.